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Payroll Changes – Exempt Staff

Payroll Changes – Exempt Staff. Individual School Meetings. October - November, 2011. Payroll Changes – Exempt Staff. Why?. Payroll Changes Exempt Staff. Why? NC General Assembly passed House Bill 720 prohibiting the pre-payment of teachers beginning in August 2012.

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Payroll Changes – Exempt Staff

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  1. Payroll Changes – Exempt Staff Individual School Meetings October - November, 2011

  2. Payroll Changes – Exempt Staff

  3. Why?

  4. Payroll ChangesExempt Staff • 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.

  5. Timeline • 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

  6. Who?

  7. Payroll ChangesExempt Staff • Who? • All exempt staff • Examples of exempt 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!

  8. What?

  9. Payroll ChangesExempt Staff • What? • Prepaid to payment upon completion of work • Monthly to bi-weekly • Bi-weekly≠ (is NOT equal to) semi-monthly

  10. Bi-weekly • ≠ • Semi-monthly

  11. Payroll Changes10 Month Certified Staff • 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 X X X x X X

  12. A0-A3 = $3043 per month ÷ 21.5 days = $141.53 per day

  13. Payroll Changes12 Month Exempt Staff • 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 X X X x X X

  14. Bi-weekly • ≠ • Semi-monthly

  15. When?

  16. Payroll ChangesExempt Staff • 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

  17. 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 days Draft 215 days = 215 days

  18. Draft of Pay Schedule10 month Certified Staff Draft

  19. 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

  20. Draft of Pay Schedule - 12 month Exempt Staff Draft

  21. What else?

  22. Q & A • 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

  23. 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

  24. 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 legislation Plus • 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.

  25. Change Benefits • 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

  26. 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)

  27. Help and Assistance?

  28. Finance Dept. Planning 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.

  29. 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

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