2019 Pay Cycle Change

In an effort to further improve business efficiencies and align with best practices, effective January 1, 2019, all university employees, other than full-time faculty members, will be paid semi-monthly in arrears.

Communication were sent out to the community in September 2018 with information regarding the change in the pay cycle.  See announcement details below for your specific group.

FREQUENTLY ASKED QUESTIONS

With this change, the University will be able to provide increased transparency. The new pay cycle will also help streamline the University’s time-keeping systems, keep sick leave balances current, and increase timesheet accuracy. These pay changes are in accordance with applicable payroll guidelines.

No. The implementation of Workday allows the university to make the pay cycle change in the effort to improve business efficiencies and align with best practices.

All FT employees, student workers and, adjunct faculty are moving to the new pay cycle. 

The new pay cycle will result in timely reporting of your sick, vacation and leave, etc. balances (for those who qualify for these). Leave taken will be reflected in the same pay period as work performed.

Effective Jan. 01, 2019, all non-exempt employees will transition to hourly pay to be paid in arrears. This applies to all regular and exception pay.

PAY PERIOD NEW PAYMENT DATE
1st through the 15th  22nd of the same month*
16th through the last day of the month 7th of the next month*

 

*Note: If the 7th or the 22nd fall on a weekend or official holiday, payment will occur on the preceding business day.
 

No.  This transition will not result in a reduction of pay.  It is simply a change in pay days from the 1st and 15th to the 7th and 22nd of each month. Monthly administrators will shift from a single paycheck on the 26th of the month to semi-monthly payments on the 7th and the 22nd.
 

Presently, all non-exempt employees are paid “current”. This means that employees are paid based on the anticipated hours to be worked.

However, sick, vacation and, other absences reported in the current period are not reflected in paychecks until the following pay period. 
 

Exception pay is any sick time, overtime or vacation time taken.

Employees will receive 3 paychecks in December 2018 (12/1, 12/15 and 12/21). The vacation cash out or the $3,000 interest free loan are available to cover the 5 business days of transition between the pay cycles and will be paid out on or before Dec. 21, 2018.  

a.    As in years past, employees will be paid early on Dec. 21, 2018 - the university’s last business day of the year - for your regular pay, Dec. 15 through Dec. 31, and for overtime & vacation pay for Dec. 6 through Dec. 20. On Jan. 22nd, 2019 they will receive regular and exception pay for Jan. 1 through Jan. 15, 2019 as well as exception pay for Dec. 21 through Dec. 31, 2018.


b.    We pay Dec. 21 to Dec 31st on time forecasted. When members return in January they will turn in time actually worked. Those differences will be adjusted on the Jan. 22nd, 2019 pay period. They will also be paid for all time worked including any overtime or exception time, between Jan. 01, 2019 and Jan. 15, 2019.

Eligible employees will have the choice of a one-time interest-free loan of $3,000 or a vacation cash out of up to 7 days. Not all employees will have both options from which to choose; refer to your detailed pay cycle announcement for further information. All affected employees should review the specific terms and conditions of their options and make their elections no later than Nov. 1, 2018. 

The interest free loan will be paid separately through account payable on or before Dec. 21, 2018.

No, the only option is $3,000 and the payments cannot be adjusted by month.

Yes.  This advance will be paid back to the university as an automatic deduction from your paycheck split evenly over the year beginning with the paycheck for Jan. 22, 2019 and ending with the paycheck on Jan. 07, 2020.

No, as long as it is repaid per the terms of the form that the employee will complete and submit by Nov. 01, 2018

Yes, you can.

Eligible employees can choose to cash out less than seven days but not more than seven.

No, this is not an option.

No, this is not an option.

No.  All full time employees and student workers who are paid current will be transitioned to the pay in-arrears schedule.  

No. The accrual of sick and vacation days will not be affected by the payroll change. You will continue to accrue these benefits on a semi-monthly basis. 
 

These withholdings will continue to reflect the elections you previously made on IRS Form W-4 and CA Form DE-4.  Please note, withholding amounts may fluctuate as pay fluctuates.  

You may wish to revisit the withholding allowance forms and accompanying instructions and worksheets to determine whether any adjustment to your withholding elections is wanted.  If you choose the vacation cash out option, withholding on the amount will be at the supplemental rate.  

Please consult with your own personal tax advisor, if necessary.   
 

The following optional benefits will not be disrupted due to this process:  long-term disability health insurance, pre-tax transit program and life insurance. 
 

The vacation cash out does not affect your earnings in 2019 but will affect your paid time off balances. Applicable income and employment taxes will be withheld from the vacation cash out payment and the amount will be included as taxable income on your 2018 IRS Form W-2.
 

Read the detailed Payroll Cycle Change Announcement then, review the pay period shift, including your last payday in Dec. 2018, to determine the best option for you.

Visit the Payroll home page on myUSF to make your supplemental pay election by Nov. 1, 2018.  

Consult with your own personal financial or tax advisor if you have questions regarding the supplemental pay options or tax issues related thereto.  
 

No. If you currently are set-up for direct deposit you do not need to make any changes. 

Yes. The University has provided an on campus financial adviser for over 20 years and many staff and faculty members have benefited from their advice. The University still provides a $200 a year stipend for all FT employees to pay for financial planners when needed. The University will cover the cost when these professionals are on campus in October. The financial advisors are not university affiliated. Scheduled dates will be announced soon.

The forms were posted on the Payroll website on Sept. 14 and are available at myusf.usfca.edu/abs/payroll.

Yes, It is.

The university has every belief that paychecks will be processed correctly and on time during the transition.

The Leadership Team will address issues if, and when, they arise.

New employees should contact their supervisor and, their union representative if applicable. Labor Relations will facilitate the conversations and the university will address issues on a case by case basis as we have done in the past. 

Yes. Information will be shared throughout the transition and will also be available on the myUSF Payroll home page. Contact payroll@usfca.edu.  if you have additional pay cycle related questions.