Standardization of Biweekly Pay Period End Date
Related Information
May 2009
FROM:
Payroll Division, Controller’s Office
SUBJECT:
Standardization of Biweekly Pay Period End Date
MSU will change the official biweekly pay period end date from its current date of Sunday to the preferred date of Saturday. This will affect the reporting of employee time worked by departments across campus beginning in mid-August 2009. Departments will report time based upon the new standard work week of Sunday through Saturday. This standardization will allow MSU to implement desired future state business processes for payroll in SAP and assure the accurate and efficient calculation of overtime within Fair Labor Standards Act (FLSA) regulations. Please share this communication with other appropriate staff.
Impact to Employees
- Biweekly pay dates remain unchanged.
- One day increase in the lag between pay period end date and the actual pay date. The lag will increase from 12 days to 13 days.
- August 14, 2009 - The last pay date with a Sunday pay end date. Payment will be for the pay period 7/20/09-8/02/09.
- Conversion Pay Date- August 28, 2009 –Schedule 082 -The first pay date with a Saturday pay period end date. Payment will be for the 13 day pay period of 8/03/09-08/15/09.
- For the conversion pay date, the compensation of hourly employees working during the overlap period (Sunday 8/09/09) will be monitored to assure overtime pay requirements are fulfilled. They will be paid the larger of the calculations as outlined by FLSA standards.
- Future pay periods will consist of a 14 day period beginning on Sunday and ending on Saturday.
Impact to University Departments
- Payroll due dates will remain unchanged as they still allow adequate time for payroll processing.
- eTime Payroll Time Reporting system will reflect new pay period end dates and departments will submit time accordingly.
- Departments using time collection systems will need to program new pay period end dates into those systems.
- For conversion pay period, departments with hourly employees working week-end hours will need to perform additional calculations for effect on overtime payments to employees. Payroll office will provide instructions for this calculation.
Questions/Issues
Can be directed to the MSU Payroll Office at 355-5010 or by email at payroll@msu.edu