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Delayed Pay Schedule Is Clarified

Spectrum Volume 19 Issue 03 - September 12, 1996

The 1996 General Assembly approved salary increases in both years of the 1996-98 biennium for the faculty and classified staff. To fund the increase, a shift in paydays will take place during the months of January through September. Faculty and staff members were notified in March of the shift in paydays in a memo from Minnis Ridenour. Since that time Personnel Services has received several inquiries as to process and the details. It was decided to respond to the most frequently asked questions and to share them with the university community in a series of articles for Spectrum and additional mailings to employees.

When will more specific information be available about deductions such as flexible reimbursement, medical insurance, and tax shelter annuities?

Salaried employees and Incentive Transition Option (ITO) Program participants will have receive mailings next week. If you are a salaried faculty or staff member and have not received this information from the associate vice president for personnel and administrative services.

What impact will the delayed pay schedule impact be on federal employees?

In the next two weeks, a letter will be sent to federal employees, detailing the impact of the payroll delay on federal benefits programs.

What will the delayed pay mean to employees paid on an hourly wage basis?

Wage employees, whose pay is already delayed by two weeks, will continue with their same pay-date schedule on the first and sixteenth of the month. By August the salaried employees will catch up with the pay schedule of wage employees.

Am I actually losing a paycheck? When am I eligible to receive it?

You are not losing a paycheck; the schedule of payments will shift a few days each pay period beginning Jan. 17, 1997, through September 16 to slowly adjust the pay-day to a delay of two weeks. During the shift, the number of days between pay periods will not exceed 20 days. After September 1997, the pay day schedule will revert back to the first and sixteenth of the month for the remainder of the calendar year and from then on.

You will, however, only receive 23 checks during the 1997 calendar year. Employees will be compensated for all time worked but on a delayed schedule. Although you will only receive 23 checks in 1997, the number of paychecks your receive for the duration of your employment with the university has not been reduced.

For example:

Howard has worked at Virginia Tech for 11 years. He, like all other Virginia Tech employees, will begin to have his payday delayed a few days each pay period beginning in January 1997.

As illustrated in the table below Howard will be paid on January 17 for work performed January 1-15. The table lists the actual pay dates after adjusting for holidays and weekends and shows the number of days between paychecks. Our current pay-date schedule also results in a variation of 14 to 18 days between pay dates.

Old and New Delayed Pay Schedules

Howard expects to quit his job Nov. 3, 1997. His last pay period worked will be November 1-15. He can expect to receive payment for that time worked on Dec. 1, 1997, just two weeks after the end of his last pay period. He does not lose a single paycheck.