Questions and Answers About Payroll Transition

Frequently Asked Questions

What is Duquesne changing about the payroll process?

Effective July 1, 2012, Duquesne will convert its payroll system for salaried employees to a process known as “payment in arrears.” Duquesne’s hourly employees are already paid by this process.

Payment in arrears describes a process in which work is performed first, and then payment for the work is made. The payment in arrears process will pay employees for time worked, with a one-week processing period between the days/weeks for which you are being paid and the date you receive the pay.
Why is the process changing?

The current pay process can be confusing for new employees as well as when employment ends. When an employee leaves the University, the current process often results in the employee having to pay money back to the University.

That can happen because the current process divides the amount of an employee’s salary equally among the number of pay periods in a fiscal year, so paychecks sometimes pay employees in advance. For example, FY 2012 has 27 pay dates, the first of which was on July 1, 2011. On that first pay date, salaried employees received 1/27th of their salary for the upcoming fiscal year even though they had not yet worked in that fiscal year.

Additionally, the current system makes it difficult to manage salaries and, in particular, salaries related to grants.
Who is affected by this change?

Approximately 843 employees will be affected. This includes:
- 12-month salaried full and part-time administrative employees
- 12-month faculty
- 12-month department chairs with a July through June appointment
- Graduate assistants with a July through June appointment who receive a stipend.
What does this change mean to me?

If you are a 12-month salaried full or part-time administrative employee, 12-month faculty, 12-month department chair with a July through June appointment or a graduate assistant who receives a stipend, your July 13, 2012 pay will include only one week of salary due to the transition to the new system.
Why will my July 13, 2012 pay include only one week of salary?

Under the payment in arrears process the pay period for the July 13 pay is June 25-July 8. However, you will have already been paid through June 30 under the old system. As a result, the July 13 pay will include compensation for only the first week of July. All subsequent pays will include two weeks of salary.
Am I required to take any action?

Yes. The July 13 pay will include only one week of salary, therefore the University is offering an interest free pay advance. You must request or decline this advance.
What is the advance?
- The advance is a one-time, interest-free loan that the University is providing to lessen the impact of what would otherwise be a one-week pay.
- The advance is not earned salary. It does not represent pay for any time worked. It is an amount being offered to make this transition as smooth as possible.
- Since the advance is not earned salary, it is not subject to taxes or retirement contributions.
How much is the advance?

Generally, the amount of the advance will equal one half of your FY 2012 bi-weekly pay multiplied by a factor of 75%. This amount approximates one week of net take home pay. (Example for an employee whose bi-weekly pay is $2000.00: $1000.00 multiplied by 75% equals $750.00. The advance amount would be $750.00.)

If you are both a 12-month faculty member and a 12-month department chair who requests an advance, it will be calculated on your base salary only, not the stipend you receive for your chair role.
How do I request or decline the advance?

12-month full-time salaried administrative employees, and
12-month faculty:
- You must select an option in the online benefit enrollment system, Benefficiency, during Open Enrollment.
- The deadline for requesting or declining is May 21, 2012, the same deadline as Benefits Open Enrollment.
- If you do not request or decline this advance, you will be automatically defaulted to the “decline” option.
Note: If you are a department chair and request an advance, the advance will be calculated on your base salary only, not the stipend you receive for your role as chair.

12-month part-time salaried administrative employees:
- You will receive a document which must be completed, signed and returned to the Office of Human Resource Management by May 21, 2012.
Graduate assistants with a July through June appointment who receive a stipend:
- Your annual appointment letter will include instructions and a deadline for requesting or declining the advance.
I understand that I need to select an option for the July 13, 2012 pay. What do I need to consider in order to make an informed decision?

Employees must consider their personal situation (deductions, automatic payments, split deposits, billing cycle for personal expenses, etc.).

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What happens if I decline the advance?

If you decline the advance, your July 13, 2012 pay will include one week of salary. Before declining, employees must consider their personal situation (deductions, automatic payments, split deposits, billing cycle for personal expenses, etc.). If your pay is deposited into multiple accounts you may need to consider making a one-time adjustment to your direct deposit allocations to cover automatic payments.
If I request an advance, how do I repay it?

The advance will be paid back through an automatic payroll deduction beginning July 13, 2012.
How long do I have to repay the advance?

Full and Part-Time Salaried Administrative Employees and 12-month faculty will have two options for payback periods:
- Option 1: 26 equal payroll deductions beginning July 13, 2012
- Option 2: 52 equal payroll deductions beginning July 13, 2012
Graduate Assistants
- 26 equal payroll deductions beginning July 13, 2012
What is the deadline for requesting or declining the advance?

The deadline is May 21, 2012, the same deadline as Benefits Open Enrollment.
Will the deductions on my July 13, 2012 pay be half of what they normally are, since the pay includes only one week?

Deductions based on earnings (i.e. taxes and retirement contributions) will be based on one week of salary. However, DUFLEX benefits and other deductions (i.e. United Way) that are not based on earnings will be deducted at the full amount. (Remember that new rates for DUFLEX will be in effect for this pay.)
What deductions will be taken out of my July 13, 2012 pay?

All of your usual deductions will occur. (See your personal “Deductions History” or "Pay Stub" in Self Service Banner. To Access your information log into DORI, click on the Employee tab and then Pay Information. Remember that changes to DUFLEX for FY13 will not appear in 2012 Pay Stubs or Deducations History.)
Can I find out the amount of my July 13 pay ahead of time so I can decide whether or not I should take the advance?

If you are a full-time employee, the University will provide an estimate of what your pay would look like if you do not take an advance. This estimate is based upon your current pay and current deduction information and will not reflect any DUFLEX changes you select for the new fiscal year. The estimate will be available in Self Service Banner.
Can I find out the amount of my advance ahead of time?

Yes. You will be able to find out the amount of your advance.
- 12-month, full-time salaried administrative employees and 12-month faculty:
  - The specific amount of your advance will be available via Benefficiency during the Benefits Open Enrollment period.
- 12-month part-time salaried administrative employees:
  - You will receive a document from the Office of Human Resource Management with the specific amount of your advance by the week of April 16, 2012.
- Graduate Assistants:
  - Your annual appointment letter will include the specific amount of your advance.
If I request the advance, what will I be paid on July 13?

If you request the advance, your July 13 pay will include:
- your advance, which will not be taxed
- payment for earnings for the first week of July
- normal payroll deductions (based on two weeks of earned salary)
- deductions for taxes based on one week of earned salary
- the first deduction to repay the advance
  
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If I decline the advance, what will I be paid on July 13?

If you decline the advance, your July 13 pay will include payment for the first week of July minus taxes and other deductions. Your net take-home pay will depend on the type and number of payroll deductions you have.
If I request the advance, when do I have to start paying it back?

You will begin paying it back through payroll deduction beginning with the pay of July 13, 2012.
What happens if I leave the University before the advance is paid back?

You are obligated to repay any amount due. Any amount remaining will be deducted from your final pay.
Is there any interest charged on the advance?

No. The University is offering this interest-free advance as a way to ease the transition to the new system.
Is the advance taxable?

No. Since the advance is not earned salary, it is not subject to taxes or eligible for retirement contributions.
I don’t think I can pay my bills with one week’s salary. What should I do?

You can request an advance that will augment your July 13 pay check.
Will my advance be indicated on my W-2 form?

No, it will not be indicated on W-2 forms because it is not earned wages.
Will all future pay periods cover only one week of work?

No. The reason the July 13, 2012 pay includes only one week is because the University is transitioning to the new system and you will have already been paid for the last week of June in the June 29 pay.
What time period will future pays include?

Future pays will include payment for any time earned during the prior two-week period. There will be a one-week processing period between the days/weeks for which you are being paid and the date you receive the pay.

For example:

Pay Period Pay Date

July 9 - July 22, 2012 July 27, 2012

July 23 - August 5, 2012 August 10, 2012

August 6 - August 19, 2012 August 24, 2012

*See the 2012 pay processing schedule for more pay periods and pay dates.
Why was July 2012 chosen for changing the payroll process?

Making the change at the beginning of FY 2013 had the least amount of impact on employees. Transitioning from a three-pay June in a year that had 27 pays to the new system minimizes the amount of salary interruption. The project was originally slated for last year, but the payroll calendar would have resulted in a 14-day pay disruption, rather than five days.
I’ve heard the phrase “salary encumbrance” related to this payroll transition. How is it related?

Salaries are encumbered on grants and contracts to assist departments in planning expenditures during the life of the grant or contract. Currently, budget administrators who have to manage salaries and expenditures must track it outside of Banner, creating duplication of effort to manage. There is a tool in Banner for salary encumbrance that is not being used. The new process will allow the tool to work in Banner.
Is the timing of this change related to the current budget challenges?

No. Making the change at the beginning of FY 2013 had the least amount of impact on employees. Transitioning from a three-pay June in a year that had 27 pays to the new system minimizes the amount of salary interruption. The project was originally slated for last year, but the payroll calendar would have resulted in a 14-day pay disruption, rather than five days.
I still have questions. Who should I ask?

If you still have questions, please call 412.396.6592 or email paytransition@duq.edu.

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Pay Period	Pay Date
July 9 - July 22, 2012	July 27, 2012
July 23 - August 5, 2012	August 10, 2012
August 6 - August 19, 2012	August 24, 2012