As part of the transition to Workday, the payroll schedule will also be changing in mid-June, 2021. All employees will transition from getting paid semi-monthly (on the 7th and 22nd of every month) to bi-weekly (every other Friday). Bi-weekly paychecks are an industry best practice and we are excited to implement this new paycheck schedule. The first paycheck on the new schedule will be on July 2.
The very first paycheck of the transition on July 2 will be an amount less than a typical paycheck because it covers just eight days — versus the normal cadence of a ten-day pay period (the bi-weekly pace). Also, the first paycheck will have no benefit deductions withdrawn. Benefit deductions will resume on the July 16 check. However, 401(k) benefits and PERS will be deducted on the July 2 check. (Also see these topics in the FAQs).
Frequently Asked Questions
Vertex and Legacy have grown. In years past, the semi-monthly payroll cadence fit the business. Today, as companies grow and manual processes need updating, we seek to find efficiency and because bi-weekly allows for greater economies of scale in the administration and servicing payroll, we are advised to incorporate this plan. As a small example, we will no longer have to reconcile paychecks for our non-exempt and hourly employees which is a smoother process entirely.
Bi-weekly paychecks are an industry best practice and a standard method of payroll payment for most companies. The transition from ADP to Workday makes it the perfect time to transition to bi-weekly paychecks.
The first paycheck on the new schedule will be on July 2. Employees will be paid every other Friday. Please see the new payroll calendar for specific pay dates.
June 22 is the final check of the former semi-monthly cadence (June 1-15). The first bi-weekly pay period will be Sunday, June 13 – Saturday, June 26 and will be paid on July 2 (with no deductions). There will be no deduction because the pay period covers just 8 days versus the former cadence of 10 days (the bi-weekly pace.) Deductions will begin on all forthcoming paychecks, example: July 16 and 30 …
Yes. With two additional pay periods in the year, there will be less per paycheck. Currently, employees are getting paid for 86.67 hours per pay period (semi-monthly). After the change to bi-weekly pay periods will cover 80 hours. Comparatively, employees will receive 2 additional paychecks per year (24 vs. 26).
Medical benefits will continue to be deducted 24 times a year. Since employees will get paid 26 times a year, there will be two paychecks where medical benefits will not be deducted. If you do not receive a paycheck (due to a leave of absence or school break) deductions will be taken out of your first check upon return for a max of three deductions.
View the new payroll calendar here for details.
Retirement benefits will continue to be deducted every paycheck so on the new payroll schedule they will be deducted 26 times a year. It will result in approximately the same amount over the year because the amount that will come out of each paycheck will be slightly less– since it is a percentage of the gross paycheck.
A no deductions paycheck means that for that particular paycheck no medical benefits will be taken out of the paycheck. That would also include FSA and HSA deductions. All medical-related expenses are deducted 24 times a year and since we are now getting paid 26 times a year there will be two paychecks with “no deductions”.
The unpaid balance will remain the same as the amount you currently owe will be divided among the 26 paychecks. The amount will be a little less per paycheck.
However, employees who are hourly may have benefits taken out even on a no deductions payday if they missed a payday due to school closure. See next question for additional details.
Since you will not be receiving a paycheck during the time you didn’t work, the deductions you owe will be pulled from your first paycheck upon your return to work. For example, if you will return to work on July 19, 2021, you will receive a check on Aug. 6, 2021 which will include deductions you missed from the summer break. Another example would be the Jan. 21 paycheck would have two deductions. There will be some caps on the dedication amounts. For information related to a specific situation, please reach out to Benefits