The University Record, November 13, 2000

Non-exempt staff paid monthly will be paid biweekly

By Vivian Byrd
Human Resources/Affirmative Action

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:

  • More frequent paychecks that will allow increased flexibility in budgeting.

  • Earlier payment of overtime, which is reported on the regular biweekly time sheet rather than a Special Payment form.

    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

    * Deductions that are taken over 24 biweekly pay periods are taken in the first and second biweekly paycheck each month. During those months when there are three biweekly paychecks, these deductions are not taken from the third paycheck.

    ** Frequency is based on union contract.

    NOTE: Types of deductions for which there is a change in the deduction frequency are indicated in bold italic print.

    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 InsuranceYes
    Long Term DisabilityYes
    Long Term CareYes
    Auto, HomeownersYes
    Flexible Spending Account(s) or Medical Reimbursement and/or Dependent CareYes
    5% Retirement ContributionYes
    Supplemental Retirement AnnuityYes
    Credit UnionYes
    U.S. Savings BondYes
    United WayYes
    Gifts to the University of MichiganYes
    ParkingYes
    Union DuesYes**Yes**
    Garnishments, Tax Levies and Friend of the CourtYes
    Other Miscellaneous Deductions or Non-benefit ItemsYes