Employee Payroll Schedule to Change to Twice a Month Starting in April 2022
FAYETTEVILLE, Ark. – Employees at the U of A will see the frequency of their pay move from monthly to semimonthly in April. This means that in April 2022, employees will begin to receive their pay twice a month, rather than once a month. While there is no action for employees to take right now, today’s announcement begins the planning process to ensure a smooth transition.
WHAT DOES SEMIMONTHLY PAY MEAN?
Semimonthly pay means employees will be paid twice a month, usually on the 15th and last business days of each month. Business days are defined as days other than weekends and university holidays. An employee’s annual salary will not change because of the shift in paycheck frequency.
HOW DOES THIS BENEFIT EMPLOYEES?
First, the university expects that most employees, after making initial adjustments to align with the twice a month payroll schedule, will find the more frequent payroll distribution makes budgeting easier when compared to receiving pay only once a month.
Second, this change provides more opportunities for increased earnings in retirement contributions, as half of the monthly contributions will be made earlier in the month, allowing more time for benefits to potentially grow.
Comp time accrual for non-exempt workers will be based on two pay periods instead of monthly. Leave accrual will continue to be provided at the end of each month.
Over the next three months, the university will provide education and support for employees as this change occurs, including considerations like adjusting monthly budgets, calculating withholding amounts for federal/state taxes, modifying direct deposits, drafts and other automated financial transactions.
HOW CAN I PREPARE?
Most of all, the university encourages its employees to be watching for specific instructions throughout the spring. Information will be shared through Workday, email, web resources, trainings and regular mail. For now, employees who budget based on a monthly payroll schedule may wish to begin reviewing their personal finances and monthly budget to:
- Identify automatic payment amounts and determine whether adjustment to payment dates should be made in April.
- Examine other payment due dates with the new payroll schedule. These could include mortgages, car loans, credit card payments and utility payments.
Again, employees do not need to take any action at this time. Additional information, including a timeline for making changes to deductions and payment dates, will be distributed to employees, and virtual office hours will be scheduled to provide employees with the opportunity to ask questions.
This change will affect all salaried employees who are currently on payroll with the U of A, including graduate assistants, and is not optional. Extra help hourly and student workers are already receiving pay twice per month.
If you have questions or would like more information about how this change will affect you, please email firstname.lastname@example.org.
About the University of Arkansas: As Arkansas' flagship institution, the U of A provides an internationally competitive education in more than 200 academic programs. Founded in 1871, the U of A contributes more than $2.2 billion to Arkansas’ economy through the teaching of new knowledge and skills, entrepreneurship and job development, discovery through research and creative activity while also providing training for professional disciplines. The Carnegie Foundation classifies the U of A among the top 3% of U.S. colleges and universities with the highest level of research activity. U.S. News & World Report ranks the U of A among the top public universities in the nation. See how the U of A works to build a better world at Arkansas Research News.
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