FLSA ConversionConverting from Monthly or Semi-monthly to Bi-

weekly Hourly

10/11/16

UR/HR/COMPDIV/REP/FLSA INFO/TRG/

CONVERSION FROM MTH_SMO TO BWH SLIDE DECK

Intended for Impacted Employees & Managers/Supervisors

10/11/16

Converting from Monthly or Semi-monthly

to Bi-weekly Hourly

Key Differences between Pay Cycles

* Pay day is 6 days after last day of pay period in order to capture actual hours worked,

including overtime hours, in pay period.

Bi-weekly Semi-monthly Monthly

Pay periodsSunday to Saturday,

2 week period

1st to 15th of month &

16th to last day of month1st to last day of month

Pay date compared to

pay period

Pay date is 6 days after last

day of pay period

Pay date is current with

last day of pay period

Pay date is current with

last day of pay period

Paychecks per year 26 24 12

Paycheck date Every other Friday 15th and last day of month Last day of month

Paychecks per month2 for 10 months of the year,

3 for 2 months of the year2 1

2

Converting from Semi-monthly to Bi-weekly Hourly

Sample Employee

Annual Salary: $42,000/year

Hourly Rate Equivalent: $20.19/hour

Observation: When an employee is converted to bi-

weekly hourly, they are paid more frequently, but less

each pay period.

Pay

Period

Gross Earnings

per Pay Period

1 $1,750

2 $1,750

3 $1,750

4 $1,750

5 $1,750

6 $1,750

7 $1,750

8 $1,750

9 $1,750

10 $1,750

11 $1,750

12 $1,750

13 $1,750

14 $1,750

15 $1,750

16 $1,750

17 $1,750

18 $1,750

19 $1,750

20 $1,750

21 $1,750

22 $1,750

23 $1,750

24 $1,750

Annually: $42,000

Semi-Monthly

(24 pay periods) Pay

Period

Gross Earnings

per Pay Period

1 $1,615.38

2 $1,615.39

3 $1,615.38

4 $1,615.39

5 $1,615.38

6 $1,615.39

7 $1,615.38

8 $1,615.39

9 $1,615.38

10 $1,615.38

11 $1,615.39

12 $1,615.38

13 $1,615.39

14 $1,615.38

15 $1,615.39

16 $1,615.38

17 $1,615.39

18 $1,615.38

19 $1,615.39

20 $1,615.38

21 $1,615.39

22 $1,615.38

23 $1,615.39

24 $1,615.38

25 $1,615.39

26 $1,615.38

Annually: $42,000

Bi-weekly Hourly

(26 pay periods)

3

How does Conversion to Bi-weekly Hourly Affect

Pay?

Semi-monthly to Bi-Weekly Hourly

Check Date Paycheck Pay Period Cash Flow Effect

November 15, 2016 Last full semi-monthly paycheck November 1 - 15, 2016 Normal

November 30, 2016 Final partial semi-monthly paycheck November 16 - 26, 2016Less than normal semi-monthly paycheck

because fewer working days in period

December 16, 2016 First bi-weekly hourly paycheckNovember 27 - December

10, 2016

Less than normal semi-monthly paycheck

because paid over 26 pay periods versus

24

December 30, 2016 Second bi-weekly hourly paycheck December 11 - 24, 2016

Less than normal semi-monthly paycheck

because paid over 26 pay periods versus

24

Monthly to Bi-Weekly Hourly

Check Date Paycheck Pay Period Cash Flow Effect

November 30, 2016 Final partial monthly paycheck November 1 - 26, 2016Less than normal monthly paycheck

because fewer working days in period

December 16, 2016 First bi-weekly hourly paycheckNovember 27 - December

10, 2016

Less than half of monthly paycheck

because paid over 26 pay periods versus

12

December 30, 2016 Second bi-weekly hourly paycheck December 11 - 24, 2016

Less than half of monthly paycheck

because paid over 26 pay periods versus

12

4

How to Plan for the Transition to Bi-weekly Hourly Pay• Review your personal budget situation and determine your income needs based on

new bi-weekly hourly pay schedule

• Make any necessary changes to ensure deductions are appropriate

o If you currently make a direct deposit based on a flat dollar amount, you may

want to adjust the amount for the per pay period deduction under the new

hourly, biweekly pay cycle. This change can be made through HRMS Self-

Service at www.rochester.edu/people.

o If you withhold an additional flat-dollar tax amount in your paycheck, you may

end up over-withholding. (Example: if you withhold an extra $100 per pay

period and are paid monthly, this will change from $1,200 per year to $2,600

per year when paid bi-weekly hourly.) This change can be made through

HRMS Self-Service at www.rochester.edu/people.

o If you contribute to the University’s retirement program, you may end up over-

contributing. (Example: if you contribute $100 per pay period and are paid

monthly, your contributions will increase from $1,200 per year to $2,600 per

year when paid bi-weekly hourly.) This change can be made through YOUR

Retirement Program link on the HRMS homepage at

www.rochester.edu/people.

• Consider FLSA Vacation Sell-Back Program

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FLSA Vacation Sell-Back Program

• One-time program to ease transition to bi-weekly hourly pay

• Use calculator in HRMS Self-Service at www.rochester.edu/people (under

Payroll and Compensation, then FLSA Impact / Vac Sell Back) to assist

you in estimating what your bi-weekly hourly gross pay will be and whether

you would like to bridge the pay gap that is initially created on the transition

from monthly or semi-monthly pay to bi-weekly hourly pay by cashing out

available vacation hours (up to one week, based on standard hours).

• Vacation hours sold will be paid in your last semi-monthly/monthly

paycheck paid on November 30, 2016

• Must be elected by November 15, 2016 by completing on-line service

request in HR Self-Service at www.rochester.edu/people (under Payroll

and Compensation, then FLSA Impact / Vac Sell Back).

6

FLSA Vacation Sell-Back Program - Terms

UR/HR/COMPDIV/REP/FLSA INFO/TRG/

BWH VS SMO PP SAMPLE.ppt

Intended for Impacted Employees & Managers/Supervisors

7/28/16- Reviewed 9/6/16

• Employees will be allowed to sell up to one week's standard hours (an

employee with standard weekly hours of 36 hours can sell a maximum of 36

hours vacation).

• Employees with a zero balance will be allowed to go up to one week's

standard hours in the negative in their vacation bank for the sell-back related

to this FLSA conversion. If an employee already has a negative balance they

will not be allowed to go beyond one week's standard hours in the negative.

(i.e. if an employee's standard hours are 24 hours per week, that employee

will be allowed to go no more than 24 hours in the negative in their vacation

bank.)

• Employees must accrue appropriate number of hours needed for any

scheduled vacations after November 27, 2016; this includes earning back any

negative balance.

7

Conversion from Semi-Monthly to Bi-weekly Hourly

- without Vacation Sell-Back Assistance

8

Employee Name: Susan Semimonthly

Annual Salary: $42,000/year; Hourly rate equivalent = approx $20.19/hour

Semi-monthly Estimate Semi-monthly Estimate Bi-weekly Estimate* Bi-weekly Estimate*

Pay period: Nov 1 to 15 Pay period: Nov 16 to 26 Pay period: Nov 27 to Dec 10 Pay period: Dec 11 to 24

Check date: Nov 15 Check date: Nov 30 Check date: Dec 16 Check date: Dec 30

Gross pay: $ 1,750.00 Gross pay: $ 1,272.73 Gross pay: $ 1,615.38 Gross pay: $ 1,615.38

Deductions: Deductions: Deductions: Deductions:

Health Care Plan 4.08 Health Care Plan 4.08 Health Care Plan 4.08 Health Care Plan 4.08

Dental 2.19 Dental 2.19 Dental 2.19 Dental 2.19

403(b) 50.00 403(b) 50.00 403(b) 50.00 403(b) 50.00

HSA 16.67 HSA 16.67 HSA 16.67 HSA 16.67

Parking 19.09 Parking 19.09 Parking 19.09 Parking 19.09

Federal Tax (single/1) 189.98 Federal Tax (single/1) 118.38 Federal Tax (single/1) 174.28 Federal Tax (single/1) 174.28

Fed MED/EE 24.77 Fed MED/EE 17.85 Fed MED/EE 22.81 Fed MED/EE 22.81

Fed OASDI/EE 105.89 Fed OASDI/EE 76.30 Fed OASDI/EE 97.55 Fed OASDI/EE 97.55

NY Tax (single/1) 70.30 NY Tax (single/1) 39.89 NY Tax (single/1) 64.47 NY Tax (single/1) 64.47

Net Pay: $ 1,267.03 Net Pay: $ 928.28 Net Pay: $ 1,164.24 Net Pay: $ 1,164.24

*Bi-weekly Estimate reflects pay for 80 hours

Net Pay - Conversion Effect (without Vacation Sell-Back)

$ 5,068.12 Nov/Dec Net pay (without FLSA Threshold change)

$ 4,523.80 Nov/Dec Net pay (with FLSA Threshold change)

$ (544.33) Difference - Net pay

Gross Pay - Conversion Effect (without Vacation Sell-Back)

$ 7,000.00 Nov/Dec Gross pay (without FLSA Threshold change)

$ 6,253.50 Nov/Dec Gross pay (with FLSA Threshold change)

$ (746.50) Difference - Gross pay

Conversion from Semi-Monthly to Bi-weekly Hourly

- with Vacation Sell-Back Assistance

9

Employee Name: Susan Semimonthly

Annual Salary: $42,000/year; Hourly rate equivalent = approx $20.19/hour

Semi-monthly Estimate Semi-monthly Estimate Bi-weekly Estimate* Bi-weekly Estimate*

Pay period: Nov 1 to 15 Pay period: Nov 16 to 26 Pay period: Nov 27 to Dec 10 Pay period: Dec 11 to 24

Check date: Nov 15 Check date: Nov 30 Check date: Dec 16 Check date: Dec 30

Gross pay: $ 1,750.00 Gross pay: $ 1,272.73 Gross pay: $ 1,615.38 Gross pay: $ 1,615.38

Vacation Sell Back $ 767.22

(38 hours sold)

TOTAL GROSS $ 2,039.95

Deductions: Deductions: Deductions: Deductions:

Health Care Plan 4.08 Health Care Plan 4.08 Health Care Plan 4.08 Health Care Plan 4.08

Dental 2.19 Dental 2.19 Dental 2.19 Dental 2.19

403(b) 50.00 403(b) 50.00 403(b) 50.00 403(b) 50.00

HSA 16.67 HSA 16.67 HSA 16.67 HSA 16.67

Parking 19.09 Parking 19.09 Parking 19.09 Parking 19.09

Federal Tax (single/1) 189.98 Federal Tax (single/1) 245.08 Federal Tax (single/1) 174.28 Federal Tax (single/1) 174.28

Fed MED/EE 24.77 Fed MED/EE 28.97 Fed MED/EE 22.81 Fed MED/EE 22.81

Fed OASDI/EE 105.89 Fed OASDI/EE 123.87 Fed OASDI/EE 97.55 Fed OASDI/EE 97.55

NY Tax (single/1) 70.30 NY Tax (single/1) 89.00 NY Tax (single/1) 64.47 NY Tax (single/1) 64.47

Net Pay: $ 1,267.03 Net Pay: $ 1,461.00 Net Pay: $ 1,164.24 Net Pay: $ 1,164.24

*Bi-weekly Estimate reflects pay for 80 hours

Gross Pay - Conversion Effect (with Vacation Sell-Back)

$ 7,000.00 Nov/Dec Gross pay (without FLSA Threshold change)

$ 7,020.72 Nov/Dec Gross pay (with FLSA Threshold change)

$ 20.72 Difference - Gross pay

Net Pay - Conversion Effect (with Vacation Sell-Back)

$ 5,068.12 Nov/Dec Net pay (without FLSA Threshold change)

$ 5,056.51 Nov/Dec Net pay (with FLSA Threshold change)

$ (11.61) Difference - Net pay

Employee Self-Service Tool

Available Employees can view their specific conversion information as

of 10/14/16 in HRMS.

Email notifications that the tool is available will be sent to affected

staff when it goes live.

Employees may sign in to HRMS and go to Main Menu Self-

Service Payroll and Compensation FLSA impact/Vac Sell-

back

You may select and save vacation sell-back hours beginning on

November 1 – November 15.

The system will be “locked” at the end of the day on November 15th

and no further changes may occur.

10

11

12

Employee can not

save sell-back

amount until 11/1/16.

Closes for changes

11/15/16.

Questions

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