Kentucky State University



Subject:? Pay Cycle Change from Bi-Weekly to Monthly for Exempt Faculty and Staff Only ?What is a monthly pay cycle?A monthly pay cycle means you will be paid on the last business day of each month for time worked during the current month for which payment is being received.When is the monthly pay cycle change happening?Beginning January 1, 2021 all exempt (salaried) faculty and staff will be reporting time on a monthly basis. The first pay date will be January 29th, 2021. **The pay cycle change does NOT affect nonexempt (hourly) staff and students. If you are unsure of your current status contact the Director of Payroll at (502) 597-6332. **How will we transition from bi-weekly to monthly?December payments for exempt faculty and staff will be as follows prior to the monthly pay cycle transition:December 11th 2020: Pay period 11/15/2020 – 11/28/2020December 15th 2020: Pay period 11/29/2020 – 12/12/2020December 30th 2020 – Pay period 12/12/2020 – 12/31/2020What are the new monthly pay periods?Monthly pay days will be the last business day of each month, a payroll calendar can be found at the link below: will the transition to a monthly pay cycle impact benefit deductions?The transition to a monthly pay cycle will impact the premium amounts that are percentage based and those that have a set amount. Deductions using a percentage method will be calculated based on the pay period’s wages and deductions. Deductions using a set amount will be deducted for the full month instead of twice month.Will the transition impact my garnishment deduction?The calculation of your garnishment deductions will change if the calculation is based on a percentage of wages earned or a specified amount is required based on pay cycle frequency. How will this impact my deductions for taxes (Federal, Social Security & Medicare)?Tax deductions will be based on monthly taxable wages. Social Security and Medicare are calculated as a percentage, (7.65%), of taxable wages. Federal withholdings are calculated based on withholding status claimed on the current W4 on file with the Payroll Department.Will I need to make any changes to my Federal withholding taxes?No. Taxes will be based on the wages earned and the withholding status claimed on the current W4 on file with the Payroll Department. Is it necessary for me to notify my financial institutions (bank, credit union, etc.) of the change in deposit schedule, especially if I have payments made directly from my account for my mortgage, car loan, etc.?If you have automatic deductions of any kind from your account(s), you will need to ensure there are sufficient funds to cover those transactions. Additionally, you may want to make arrangements with your financial institution about any necessary changes to payment dates.What if I pay some of my bills through automatic bill pay?If you have automatic bill pay set up for regular expenses, such as mortgage payments, car payments or student loan payments we encourage you to work directly with your financial institution(s) to change payment dates if necessary. They are usually very understanding to changes of this nature and will work with you. If you need a letter explaining or verifying the changes, Payroll will be happy to supply one for you.Do I need to update any additional specific direct deposit amounts?We encourage you to review your current direct deposit set up and determine if any specific direct deposit amounts need to be updated due to the pay cycle change.Can I choose not to transition to a monthly pay cycle?No. All exempt faculty and staff will be transitioned to the monthly pay cycle. ................
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