1. Biweekly Pay Transition
University of California, Berkeley
Biweekly Pay Transition
Non-Exempts to a Biweekly Pay cycle
Controllers Office, Central Payroll
Last Updated 12/10/12

2. Overview Introduction Payroll Deductions Moving Forward
Staying Informed
Transition Assistance Program
Financial Preparation
Additional Questions

3. Biweekly Pay Conversion
UC Berkeley will transition approximately 10,500 non-exempt employees from the Monthly (MO), Monthly Arrears (MA), and the Semi-Monthly (SM) pay cycles.
After conversion, all exempt employees will be on the MO pay cycle and all non-exempt employees will be on the BW pay cycle

4. Why change to Biweekly
Berkeley’s transition to a biweekly pay cycle is to comply with recent decisions at the UC Office of the President to implement a single payroll system across all ten campuses and five medical centers. In addition, standardizing pay cycles prepares Berkeley for the move of timekeeping processes to Campus Shared Services, improving the quality and efficiency.

5. Who will convert to Biweekly Pay?
Non-exempt Employees
Employees currently paid on the 1st , 8th, and/or 23rd
Eligible for overtime, shift, and on-call pay
Report time worked as well as sick, vacation, comp- time, and other leave to the nearest quarter hour

6. Others Impacted by this change
Exempt employees
Currently paid on the 8th of the month
Not eligible for over-time
Reports leave in whole day increments
Will be converted to a monthly cycle and be paid on the 1st of the month

7. Benefits of a Biweekly Pay Cycle
Employees will receive overtime pay more frequently
Employees will be paid every other week
Will eliminate the need for timekeepers to project employee time each pay period
Pay cycles will be standardized across the UC system

8. UCB Pay Cycle Comparison
Monthly
Semi-Monthly
Biweekly Pay Cycle
Pay Period
1-31
1-15
16-31
12:01 a.m. Sunday to midnight Saturday
Two-week intervals
Paychecks Per Year 12 24
Minimum of 26 and maximum of 27
Paycheck Date
1st (MO) or 8th (MA)
8th and 23rd
Second Wednesday following the close of the pay period except if second Wednesday is a holiday, then payday is the first working day prior to the holiday except for the New Years holiday for which the pay date will always be the first banking day after January 1st.
Employees in Pay cycle
Non-Exempt or Exempt, positive pay or exception employees, on variable/fixed schedules and on call shifts.
Non-exempt, positive pay employees, on variable/fixed schedules and on call shifts.

9. Typical Monthly Pay Cycle
Pay Period = 1st to last day of the month
Standard pay date is 1st or 8th
Receive monthly earnings on the 1st or the 8th of the following month (i.e. January earnings paid on Feb. 1st or 8th)
12 paychecks per year

10. Typical Semi-Monthly Pay Cycle
Pay Period = 1-15 and 16-last day of month
Standard pay date 23rd and 8th
(unless pay day falls on a weekend, the pay day will be the proceeding Friday)
January earnings paid on Jan. 23rd and Feb. 8th
24 paychecks per year
1/1-1/15 paid 1/23
1/16-1/31 paid 2/8
2/1-2/15 paid 2/22
2/16-2/28 paid 3/8
3/1-3/15 paid 3/22
3/16-3/31 paid 4/8
*PPS = Pay Period Start, PPE = Pay Period End*

11. Typical Biweekly Pay Cycle
Pay Period = Sunday to Saturday, 2 week period
Standard pay date is every other Wednesday
Overtime is included in each pay check
26 paychecks per year (maximum of 27)
80 hours per pay period
1/6-1/19 paid 1/30
1/20-2/2 paid 2/13
2/3-2/16 paid 2/27
2/17-3/2 paid 3/13
3/3-3/16 paid 3/27
3/17-3/30 paid 4/10
*PPS = Pay Period Start, PPE = Pay Period End*

12. 2013
Biweekly Calendar

13. Hourly Pay Rate
All non-exempt employees on a biweekly pay cycle will have an hourly pay rate.
Take your annual rate divided by 2088 to determine your hourly rate
$39,000/2088*=$18.68 OR
Take your monthly rate and divide by 174
$3250/174=$18.68
*2088=174 x 12

14. Payroll Deductions
Percentage and flat rate deductions

15. Benefits Deductions
Health and welfare deductions will be split between two biweekly checks (1/2 on each biweekly check).
Fixed flat amount deductions such as parking, union dues, etc. will be split between two biweekly checks (1/2 on each biweekly check).
Percentage amount deductions such as 403(b) and 457(b) plans, garnishments, etc. will be deducted from every biweekly paycheck

16. Deduction Holidays
There are two times a year when flat dollar deductions are not deducted from your paycheck. These paydays are referred to as deduction holidays
A deduction holiday occurs when three biweekly pay period end dates fall within the same month
The deduction holidays in 2013 will be April 10th and September 11th. They can be identified on the Biweekly payroll calendar by the bold black square surrounding the date. The biweekly payroll calendar is available at

17. Benefit Deduction Comparison
Current Process (Benefits are deducted once per month)
Pay Cycle
Pay Date
Benefits Paid MO
2/1
February MA
2/8 SM
After Conversion Process (Benefits are deducted twice per month) BW
2/13
Split between the first two biweekly checks in the month (1/2 on each biweekly check).
½ March Premium
Example of deduction process is displayed above

18. Reviewing Deductions by Paycheck Monthly Compared to Biweekly

19. Reviewing Deductions by Paycheck Semi-Monthly Compared to Biweekly

20. Moving Forward
How does this impact me?

21. Non Exempt Employee View
Will be paid more frequently
Will consistently have an 80 hour pay period
Will pay ½ my monthly benefit premium on the first two checks of the month
Will receive overtime more timely
If I am currently receiving a monthly pay rate, I will be converted to an hourly pay rate
Will report time more frequently
Will receive vacation accrual based on a factor accrual rate

22. Department View What will change?
HCM Appointments will be converted and need to be validated by departments
Information in Payroll and Personnel System (PPS)
Time Reporting deadlines and corresponding pay dates
Employees FLSA status will determine whether they are on a Biweekly or Monthly pay cycle
Non-Exempt employees will be on a factor accrual rate
Payroll Expense Distribution PPP5302 report

23. Financial Preparation
Getting ready for the Biweekly Conversion

24. What should an employee do to prepare for the change?
Start early and plan ahead
Review your personal budget situation and determine your income needs based on the new Biweekly pay schedule.
Review your current tax withholding elections and make any necessary changes especially additional tax withholding amounts.
Request that creditors/lenders/financial institutions adjust your automatic withdrawal or bill-pay dates to align with your new pay schedule.

25. What Financial tools will help me plan?
Biweekly Conversion Calculator (see the Biweekly website)
Biweekly Pay Planner (see the Biweekly website)
Analyze your Cash Flow (see the following example)

26. Analyze your Annual Cash Flow
Employees will receive pay more frequently however the check amount will be less.
Employees will receive 26* biweekly paychecks in a year (currently receiving 12 paychecks in a year)
10 months per year employees will receive 2 paychecks per month
2 months per year employees will receive 3 paychecks per month
*maximum of 27 pay cycles in a year

27. Transition Assistance Program
Vacation & Comp-Time Payout and No Interest Loan

28. Transition and Loan Assistance Program
Employees that meet certain eligibility requirements will have the option of a no interest loan and/or vacation/comp time accrual cash out
Loan: minimum of $100 and a maximum of $1000
Vacation/Comp Time Payout: Up to 80 hours
Application forms must be submitted during the program request period (to be announced)
Human Resources will review and approve applications
Central Payroll will pay loan and/or vacation/comp time on January 16, 2013.

29. VACATION/COMP TIME PAYOUT
Description
Cash out from employee’s existing accrued vacation and/or compensatory time
Who is Eligible?
Any non-exempt career, contract, limited and per diem employee converting to biweekly and meets the following criteria:
- Employee appointment ≥ 50%
- Employment status of “Active”
- Hired prior to a date to be determined
- Employee has existing accrued vacation/comp time
How much
Up to 80 hours (hours are subject to verification of actual vacation/comp time employee has accrued)
Program Request Period
Application period will be announced to campus
Terms of Participation
Maximum of one request per eligible employee for a no interest loan and/or vacation/comp time cash out during the program request period
Process
Employee must complete, sign and submit the Transition Assistance Program application to Human.
Disbursement Schedule
Vacation/comp time accrual cash-out will be paid on a date to be determined and announced to campus.
Method of Disbursement
Payment will be made by Central Payroll via employees current payment option, e.g, direct deposit or paper check

30. NO INTEREST LOAN Description
Short-term, no interest loan from the University through a newly created Transition Assistance Program
Who is Eligible?
Any non-exempt career, contract, limited and per diem employee converting to biweekly and meets the following criteria:
- Employee appointment ≥ 50%
- Employment status of “Active”
- No known separation by TBD
- Hired prior to a date to be determined
How much
Minimum: $100
Maximum: $1,000
Program Request Period
Application period will be announced to campus
Terms of Participation
Maximum of one request per eligible employee for a no interest loan and/or vacation /comp time cash out during the program request period
Process
Employee must complete, sign and submit the Transition Assistance Program application to Human Resources by close of business day on 12/7/12.
Disbursement Schedule
Target disbursement date will on a date to be determined an announced to campus.
Terms of Repayment
Via payroll deduction
First installment repayment will be deducted from biweekly pay.
Paid in equal installments per biweekly pay cycle. Entire loan balance must be repaid by a date to be determined. This deduction is not taken on the payday corresponding to a third biweekly pay period end date in a month, aka “deduction holiday.”
Repayment formula: Loan amount/12 biweekly pay cycles = amount per biweekly pay day
Method of Disbursement
Paid on employees check scheduled for a date to be determined.
Must follow employee’s current payment option, e.g, direct deposit or paper check

31. Planning your Transition
Contact financial institutions, lenders, banks, etc. and request to:
Move bill due dates to later in the month
Pay half in early February and half in later February
Use the Biweekly pay calculator located on the UCB Payroll website to assist you in estimating what your biweekly pay will be
Consider the Transition Assistance Program:
No-interest loan (min of $100 up to a max of $1,000) and/or
Cash out of up to 80 hours of leave from accrued vacation time and/or accrued comp time

32. Staying Informed

33. How to Prepare
A variety of informational resources are available to assist employees through this transition process.
Biweekly information web page
Biweekly Pay Quick Facts
2013 Biweekly Pay Date Calendar
Employee Checklist
2013 Biweekly Pay Planner
Biweekly Conversion Calculator
All information is available at

34. CalTime Timekeeping
CalTime is an automated timekeeping system using Kronos  software. It is an Operational Excellence  project, sponsored by Human Resources . The CalTime initiative is intended to improve and standardize timekeeping across campus by consolidating it into a single online tool
The CalTime team has been working with department timekeepers and key stakeholders to help them prepare for the changes in how employees report their time and submit their timesheets. Additional information on the many resources available to help all employees prepare for the change to an automated system and standardized time reporting is available at the 
CalTime will be available for non-exempt employees when we go to biweekly pay

35. Additional Questions?
Please review the frequently asked questions and biweekly toolkit by visiting the Central Payroll website at: You may also For time reporting questions, please visit: You may also