In July, the University announced two important changes to biweekly payroll procedures, effective Jan. 1, 2001. The changes were announced six months in advance to allow time for affected staff to complete any arrangements with their financial institutions needed to accommodate the changes.
Change in Pay Schedule
Non-exempt staff now paid on a monthly schedule will be paid on a biweekly schedule. The change will affect approximately 2,000 staff in Professional/Administrative classifications from P/A 01 through P/A 06.
The University and affected staff members will share the benefits from the revised procedure. Affected staff will benefit from:
The new procedure will permit the University to be in compliance in paying overtime for all non-exempt staff; permit overtime liability monitoring for all non-exempt staff; increase the timeliness and accuracy of time report data, thereby reducing overpayments; and eliminate the need to design two types of time reporting systems for monthly-paid staff.
The first biweekly pay date in 2001 will be Jan. 12, for the period Dec. 24, 2000–Jan. 6, 2001. In that paycheck, affected staff will receive pay for Jan. 1–Jan. 6, 2001. All paychecks thereafter will include two weeks’ salary.
Affected staff who have arrangements with their banks or credit unions for automatic transfers of funds to pay mortgages, loans, utilities or other bills will want to review those arrangements carefully to ensure that the transfer and/or payment dates are appropriate. The University will provide a letter confirming the change and the effective date for any staff person whose financial institution requests it.
Staff who have their pay directly deposited do not have to submit any new forms; their net pay will be transmitted for availability on each Friday biweekly payday.
Salary advances can be made available, if needed, during the transition period.
Change in Frequency of Deductions
For approximately 9,000 staff who are paid biweekly and participate in benefits plans, payroll deductions that currently are taken 12 times per year will be taken in 24 equal installments from the first two paychecks of each month. If there are three pay dates in a month, no deductions will be taken from the third paycheck, except retirement contributions. This includes payroll deductions for health, dental and other benefits. Please see the chart (below) for details on the frequency of various deductions. The change in the frequency of deductions will take place January 2001 to pay for February 2001 premiums.
Information regarding affected staff is available on the Web at www.umich.edu/~hraa/erc/paychange.htm.
Revisions will be made to Standard Practice Guide, Section 201.28-1, Overtime, to reflect the change.
Questions can be directed to Sue Miley in the Payroll Office, (734) 647-3988; Connie Ruehs in the Payroll Office, (734) 764-8259; or Brian Vasher or Jeremy Little in the Benefits Office, (734) 763-1217.
Deduction Types and Frequency for Biweekly-Paid Staff
| Type of Deduction Taken | Taken Over 26 Biweekly Pay Periods | Taken Over 24 Biweekly Pay Periods (2 Times Per Month)* | Once Each Month | ||
| Medical (Health, Dental, Vision) | Yes | ||||
| Life Insurance | Yes | ||||
| Long Term Disability | Yes | ||||
| Long Term Care | Yes | ||||
| Auto, Homeowners | Yes | ||||
| Flexible Spending Account(s) or Medical Reimbursement and/or Dependent Care | Yes | ||||
| 5% Retirement Contribution | Yes | ||||
| Supplemental Retirement Annuity | Yes | ||||
| Credit Union | Yes | ||||
| U.S. Savings Bond | Yes | ||||
| United Way | Yes | ||||
| Gifts to the University of Michigan | Yes | ||||
| Parking | Yes | ||||
| Union Dues | Yes** | Yes** | |||
| Garnishments, Tax Levies and Friend of the Court | Yes | ||||
| Other Miscellaneous Deductions or Non-benefit Items | Yes |