Payroll Changes – Exempt Staff

Individual School Meetings

October - November, 2011

Payroll Changes – Exempt Staff

Why?

• Why?

– NC General Assembly passed House Bill 720 prohibiting the pre-payment of teachers beginning in August 2012.

• This legislation has rewritten NC General Statute 115C-302.1(b) to say: “Teachers shall be paid only for the days employed as of the set pay date. Payment for a full month when days employed are less than a full month is prohibited, as this constitutes prepayment.”

• DPI has informed us there may be some type of technical correction to the legislation, which may change the date for the first pay check.

– Per Leanne E. Winner, NCSBA Director of Governmental Relations, the bill sponsor is working to get the technical correction passed in a special session in November. Otherwise, it will have to wait until May.

Payroll ChangesExempt Staff

• Summer 2011 – NC General Assembly passed House Bill 720

• September 2011 – K-12 presentation

• October 2011 – November 2011 – Present overview to schools and departments

• December 2011– March 2012 – Determine and evaluate details of legislative changes

• March 2012 – K-12 presentation and school treasurer (train the trainer)

• April - May 2012 – Present details to schools and departments

• July 1, 2012– 12 month employees are converted to new schedule

• August 20, 2012– Certified employees are converted to new schedule

Timeline

Who?

Payroll ChangesExempt Staff

– Teachers and other certified staff• Technology Facilitators• Media Specialists• Athletic Directors• English, Math, or Science

Teachers• K-5, 6-8, 9-12 Teachers• CTE Teachers• ROTC

• All others not listed (not all inclusive)

– Superintendent– Cabinet Members– Principals and Assistant Principals– Directors and Supervisors

– In other words, YOU!

• Who?– All exempt staff

• Examples of exempt staff

What?

• What?– Prepaid to payment upon completion of work

– Monthly to bi-weekly• Bi-weekly ≠ (is NOT equal to) semi-monthly

Payroll ChangesExempt Staff

Bi-weekly

≠ Semi-monthly

• Bi-weekly ≠ (is NOT equal to) semi-monthly

– Bi-weekly – paid every 2 weeks

• Receive 23 checks per year (20 ten day payments, 3 five day payment)

• A0-A3 = $3043 per month ÷ 21.5 days = $141.54 per day

– Based on calculation method per DPI

• $141.54 per day x 10 days = $1,415.40 per pay• $1,415.40 x 20 per year = 28,308.00 ( 20 ten day payments) + 2,123.10 ( 3 five day payments) = $30,431.10 annually

– Semi-monthly – paid 2 times per month

• Receive 20 checks per year

• A0-A3 = $3043 per month ÷ 2 times = $1,521.50 per pay

• $1,521.50 x 20 per year = $30,430 annually

Payroll Changes10 Month Certified Staff

X X X X X X

A0-A3 = $3043 per month ÷ 21.5 days = $141.53 per dayPay Date Days Gross Pay

August 28, 2012 5 707.70September 11, 2012 5 707.70September 25, 2012 10 1,415.40

October 9, 2012 10 1,415.40October 23, 2012 10 1,415.40

November 6, 2012 10 1,415.40November 20, 2012 10 1,415.40December 4, 2012 10 1,415.40

December 18, 2012 10 1,415.40January 1, 2013 10 1,415.40

January 15, 2013 10 1,415.40January 29, 2013 10 1,415.40

February 12, 2013 10 1,415.40February 26, 2013 10 1,415.40

March 12, 2013 10 1,415.40March 26, 2013 10 1,415.40

April 9, 2013 10 1,415.40April 23, 2013 10 1,415.40May 7, 2013 10 1,415.40

May 21, 2013 10 1,415.40June 4, 2013 10 1,415.40

June 18, 2013 10 1,415.40June 21, 2013 5 707.70

• Bi-weekly ≠ (is NOT equal to) semi-monthly

– Bi-weekly – paid every 2 weeks

• Receive 26 checks per year

• Assistant Principal A0-A7 = $3781 per month x 12 months / 52 weeks / 5 days = $174.51 per day x 10 days = $1,745.10 per pay

– Based on calculation method per DPI

• $1,745.10 x 26 per year = $45,372.60 per year

– Semi-monthly – paid 2 times per month

• Receive 24 checks per year

• Assistant Principal A0-A7 = $3781 per month ÷ 2 times = $1,890.50 per pay

• $1,890.50 x 24 per year = $45,372 per year

Payroll Changes12 Month Exempt Staff

X X X X X X

Bi-weekly

≠ Semi-monthly

When?

• When? – July 1 = 12 month staff– August 20 = 10 month staff

• What else?– TimeKeeper approval day will still be Monday– Direct deposit day will be Friday– Pay Day will be Tuesday

Payroll ChangesExempt Staff

Draft of Pay Schedule10 month Certified Staff

Current Payroll (Now) Bi-Weekly Payroll (Later)• Friday, Aug 31st – 21.5 days

• Friday, Sept 28th– 21.5 days

• Wednesday, Oct 31st – 21.5 days

• Friday, Nov 30th – 21.5 days

• Monday, Dec 22nd – 21.5 days

• Thursday, Jan 31st – 21.5 days

• Thursday, Feb 28th – 21.5 days

• Friday, March 29th– 21.5 days

• Tuesday, April 30th – 21.5 days

• Friday, May 31st – 21.5 days

• Tuesday, Aug 28th – 5 days

• Tuesday, Sept 11th – 5 days

• Tuesday, Sept 25th – 10 days

• Tuesday, Oct 9th – 10 days

• Tuesday, Oct 23rd – 10 days

• Tuesday, Nov 6th – 10 days

• Etc…continuing pattern

• Tuesday, June 4th – 10 days

• Tuesday, June 18th – 10 days

• Friday, June 21st – 5 days215 days = 215 days

Draft

Draft of Pay Schedule10 month Certified Staff

Draft

Draft of Pay Schedule12 month Exempt Staff

Current Payroll (Now) Bi-Weekly Payroll (Later)• Tuesday, July 31st – 22 days• Wednesday, Aug 31st – 22 days• Friday, Sept 30th – 22 days• Monday, Oct 31st – 21 days• Wednesday, Nov 30th – 22 days• Thursday, Dec 22nd – 23 days• Tuesday, Jan 31st – 21 days• Wednesday, Feb 29th – 20 days• Friday, March 31st – 23 days• Monday, April 30th – 21 days• Thursday, May 31st – 22 days• Friday, June 22nd – 22 days

• Tuesday, July 17th - 5 days• Tuesday, July 31st – 10 days• Tuesday, Aug 14th – 10 days• Tuesday, Aug 28th – 10 days• Tuesday, Sept 11th – 10 days• Tuesday, Sept 25th – 10 days• Etc…continuing pattern• Tuesday, May 21st – 10 days• Tuesday, June 4th – 10 days• Tuesday, June 18th – 10 days• Tuesday, July 2nd – 10 days• Tuesday, July 16th – 10 days

Draft

Draft of Pay Schedule - 12 month Exempt Staff

Draft

What else?

• Why was my paycheck not as high as I thought?– Hours were reduced as a part of budget cuts– 10 months pay was divided over 23 pay periods, not 20 (bi-weekly vs. semi-monthly)– Staff were not conscious of the impact of deductions (“insurance poor”)

• What happened to my deductions?– There were deduction errors that were unrelated to the conversion– Two enrollment periods for state health plan– Premium increases/decreases– For 10 month employees on installments, deductions are taken over 10 months vs. 12

Q & A

• Does this affect me if I am on installments?– YES

• Payments made under state installments are for June and July 2012 (now)• Payments made under state installments are for July and August 2013 (later)• August check will be delayed the same for all teachers and certified staff

• Does this affect me if I am a 12 month employee?– YES

• Every CCS employee will be on bi-weekly pay• Every employee must evaluate their own personal financial needs and plan

accordingly• Every 12 month employee will have a 7 day processing time

Q & A

• I am a 10 month teacher and/or certified employee, why is my pay being held for three weeks when 12 month is held one week?– Teachers and/or certified employees have been prepaid for approximately 2 weeks

under the current calendar legislationPlus– Every employees will have a 7 day processing time

• Why is a 7-day processing time necessary?– One day for employee to approve time on TimeKeeper– One day for supervisor/Principal to approve time on TimeKeeper– Three days for Cabarrus County Schools to process payroll– Two days for the bank to process direct deposit file

• Can mortgage/loan payment dates with SECU be changed?– NCSBA has begun conversations with the SECU and we will be back in touch once we

have a definitive answer.

Q & A

• Increase efficiency and fiscal accountability

• Increases cash flow (due to no advance pay)

• Increases employee understanding of paycheck– All employees will be on the same schedule– Absence period and pay period will be the same– Change will eliminate advance payments

• Difficult to collect “unearned” pay from employees – Terminated employment – Did not report to work and did not have accrued leave

Change Benefits

• Align pay with work • Employees are currently paid in advance

– for up to 12 days (56% of their pay)

• Reduces time between pay checks– Old schedule – December – January gap = approximately 40 days– New schedule – 2 week intervals– New employees will have a shorter waiting period for their first pay check

• Supplements may be paid earlier than June 2013 – (more details in April-May 2012)

Change Benefits

Help and Assistance?

• Finance will provide encouraging reminders through email and/or TimeKeeper sign on screens– Think about and/or adjust summer cash NOW

– Call State Employees Credit Union – Consider additional (2nd or 3rd) direct deposit– Employee Assistance Program (EAP) has financial planning assistance

• To receive professional, confidential assistance, call 704-786-7918 – Save Longevity – Save November 2011 and June 2012 Supplements

• The expectation is that employees understand the bottom line affect of this change and have time to plan for the conversion as needed.

Finance Dept. Planning Assistance

• Every effort will be made to provide information and assistance during this conversion period including: – Final pay schedule (pending legislation) non-draft– State installment option (pending legislation) – Deduction schedule with amounts– Salary schedule with daily rate of pay for teachers– Salary schedule for other exempt staff

Finance Dept. Planning Assistance