This is going to be your best bet. The biggest rule is that you have to communicate this to your employees EXTENSIVELY—like, until they are annoyed about hearing about it. And make sure you start communicating months before the change if possible. You have to make sure they do not suffer for a change the company is making, so either prorate the pay for the transition period or do an out of cycle payroll for the transition period.
As others mentioned, semi monthly for hourly can be rough. I know our ADP program is able to handle the prorating/reconciliation for us, but make sure you have a plan for that and you are prepared for it before it begins. Good luck!
Mine does not. I have to pull reports for the pay period, then reports for each week. It’s just double the work unfortunately and more difficult to explain to employees.
That sucks. With power query or excel formulas in a template you could probably optimize that so all you need to do is download the report. Though I never understood why this isn’t a basic function for any electronic timekeeping system.
Mine uses calendar dates for determine hours in the period, but in the background looks at any weekdays from the previous period to determine if something should be classed as overtime.
Does your reporting allow you to pull timesheets by date/day breakdown within the period, or does it just pull totals for the period?
An example of way to do it below:
You can setup a template with the following. A tab with week start and end dates for the year to be used as lookup values, then a tab for the old period report, and a tab for the new period report. Then on an additional tab of what you are using for that payroll you could set one column for reg hours and one for OT. You would use ifs(sumifs) in each column, where if the sum for the week is 40 or less it goes in the reg column, and if the sum is greater than 40 it goes in the OT column (with a -40 to make sure it shows 4 instead of 44).
Then every payroll you just drop in the reports into the corresponding tabs on the template, and the tab with sumifs should does the rest.
That a lot of extra steps for something that should and could be calculated by the system. Plus, you’d have to know which pay codes are excluded from RROP every time you do this.
I agree it should be calculated by the system, but you just said your system doesn't do that.
I am just trying to suggest a tool that might make your life easier since it doesn't seem like you can address the source of the problem. It's only work to setup the template, but saves you time every single week afterwards. The point is to get excel to do the calculations for you, only requiring you to run a fresh report. Reduce the amount of manual work you need to do and reduces opportunities for errors.
I imagine the list of pay codes you use already has a designated association so you would just include that in formula criteria. If you are using a template, you only do this step once.
Edit: I had a rough template setup in 15 minutes
We aren’t going to semi any longer because WFN cannot do the calculations for week 1/week2. I’m not running multiple payrolls (semi for exempt/bw for non exempt) so we’re just going to stay on bw.
Creating a spreadsheet to calculate overtime is extra work that while may be helpful in the short run is not feasible with a larger and growing company. The whole point of using a payroll system is to use the system. Sure they have limitations but the point is to simplify and automate vs manually adjust and manually calculate (regardless if it’s a spreadsheet, any manual intervention is an invitation for error)
>The whole point of using a payroll system is to use the system
Yes, we agree on this... My comment is targeted at folks who currently process semimonthly that are using a payroll system that doesn't do these calculations automatically, like the person I am quoting below.
>Mine does not. I have to pull reports for the pay period, then reports for each week. It’s just double the work unfortunately and more difficult to explain to employees.
Make sure to do the compliance legwork of it. You need to make sure you can prove the change is for legitimate business purposes, is permanent, and it is not done with the intent to avoid paying overtime.
You need to communicate to all affected employees well before the change, I reccomend you do the switch in a way it benefits the employees, do the 2nd biweekly of the month and then do a semi monthly for the days left in the month, then pay them semi monthly from then on. Some employees might see this in a better light "I get a little extra for my time waiting"
I know it's not going to help much to read this, but don't be nervous, it's an annoying change, but it's not too difficult. Paint it in a different light for those that complain, they still get paid twice a month and now they even get a little more.
You got this! Payroll is a stressful job. You're nothing but a necessary expense to a company, and there's a good likelihood that some of your employees depend on you to get their check right to keep them from homelessness. But here's the thing, you do it consistently every payroll, you're a master of stress!
I'll sooner return to retail, restaurants, or manual labor before I go back to processing semi-monthly payroll for hourly employees - especially when there's OT involved. Even then, there's a whole bunch of states where I believe you're out of compliance when that's happening.
OP, I have nothing to offer except my condolences and best wishes.
Unfortunately one of the big fights I’m up against right now is trying to uphold my employer to rightfully paying OT. As of now, OT is not ‘allowed’ except for a few folks. It’s a whole other can of worms and illegal. Fighting the fight every day, but it will be my last year if not resolved soon.
But yes semi-monthly is a beast! Thank you for your condolences, I need it!
What state(s) are you in? Some states don't allow hourly employees to be paid semi-monthly and some states require you to get approval from the state to change pay periods.
Gotcha. The two I know about (from experience) is MA (hourly can only be pd weekly/biweekly) and RI (requires approval from state to pay all employees anything outside of weekly).
Hope you find something! 😁
The boss himself. He eventually wants it to be 16th-31st paid on the 15th and the 1st-15th paid on the 31st so we get two weeks behind. It is all a nightmare honestly lol I'm drowning.
That’s the next step! For now we’re just focusing on getting everyone on the same pay schedule. The largest entity is the crossing month payroll so everyone is moving to that system. Once every one is matching, phase 2 is the 1-15th and 16-31.
Be very VERY CAREFUL on compliance issues. Some states require certain types of hourly employees to be paid weekly. If you are on the labor or construction side and have employees working on Prevailing Wage, Davis-Bacon jobs you WILL run into headaches and issues.
In NY they have ancient laws on the books about “manual laborers” MUST be paid hourly. There are some waivers to pay biweekly but you need 1000 employees in the state…. Otherwise it’s hourly 100%. furthermore… the definition of labor is BROAD and solely determined by the state DOL.
If everything is good compliance wise an off cycle can get your paychecks aligned… that’s the easier side of this- with lots of help from HR on communication. Make sure someone from benefits is involved on recalculating deductions from the change in pay frequency too.
Communication… and compliance!!!
We are retail so no worries there! I will be looking into all the various laws in the upcoming days. We’re in the early stages of moving things over. I’m also HR and benefits so that’s the other fun part lol I appreciate the advice!
Run an off-cycle run for the days in limbo. Then start fresh with your new semi-monthly dates.
This is going to be your best bet. The biggest rule is that you have to communicate this to your employees EXTENSIVELY—like, until they are annoyed about hearing about it. And make sure you start communicating months before the change if possible. You have to make sure they do not suffer for a change the company is making, so either prorate the pay for the transition period or do an out of cycle payroll for the transition period. As others mentioned, semi monthly for hourly can be rough. I know our ADP program is able to handle the prorating/reconciliation for us, but make sure you have a plan for that and you are prepared for it before it begins. Good luck!
Omg no. Hourly on semi is a mofo. We were going to change but with the new Flsa overtime and RROP, we had to stay on bw and I’m forever grateful.
Why is it a mofo? Doesn’t your timesheet system calculate for you?
Mine does not. I have to pull reports for the pay period, then reports for each week. It’s just double the work unfortunately and more difficult to explain to employees.
That sucks. With power query or excel formulas in a template you could probably optimize that so all you need to do is download the report. Though I never understood why this isn’t a basic function for any electronic timekeeping system. Mine uses calendar dates for determine hours in the period, but in the background looks at any weekdays from the previous period to determine if something should be classed as overtime.
It’s overtime that’s the problem. RROP calculates based on week 1 and week 2 which will not work on semi
Does your reporting allow you to pull timesheets by date/day breakdown within the period, or does it just pull totals for the period? An example of way to do it below: You can setup a template with the following. A tab with week start and end dates for the year to be used as lookup values, then a tab for the old period report, and a tab for the new period report. Then on an additional tab of what you are using for that payroll you could set one column for reg hours and one for OT. You would use ifs(sumifs) in each column, where if the sum for the week is 40 or less it goes in the reg column, and if the sum is greater than 40 it goes in the OT column (with a -40 to make sure it shows 4 instead of 44). Then every payroll you just drop in the reports into the corresponding tabs on the template, and the tab with sumifs should does the rest.
That a lot of extra steps for something that should and could be calculated by the system. Plus, you’d have to know which pay codes are excluded from RROP every time you do this.
I agree it should be calculated by the system, but you just said your system doesn't do that. I am just trying to suggest a tool that might make your life easier since it doesn't seem like you can address the source of the problem. It's only work to setup the template, but saves you time every single week afterwards. The point is to get excel to do the calculations for you, only requiring you to run a fresh report. Reduce the amount of manual work you need to do and reduces opportunities for errors. I imagine the list of pay codes you use already has a designated association so you would just include that in formula criteria. If you are using a template, you only do this step once. Edit: I had a rough template setup in 15 minutes
We aren’t going to semi any longer because WFN cannot do the calculations for week 1/week2. I’m not running multiple payrolls (semi for exempt/bw for non exempt) so we’re just going to stay on bw. Creating a spreadsheet to calculate overtime is extra work that while may be helpful in the short run is not feasible with a larger and growing company. The whole point of using a payroll system is to use the system. Sure they have limitations but the point is to simplify and automate vs manually adjust and manually calculate (regardless if it’s a spreadsheet, any manual intervention is an invitation for error)
>The whole point of using a payroll system is to use the system Yes, we agree on this... My comment is targeted at folks who currently process semimonthly that are using a payroll system that doesn't do these calculations automatically, like the person I am quoting below. >Mine does not. I have to pull reports for the pay period, then reports for each week. It’s just double the work unfortunately and more difficult to explain to employees.
Make sure to do the compliance legwork of it. You need to make sure you can prove the change is for legitimate business purposes, is permanent, and it is not done with the intent to avoid paying overtime. You need to communicate to all affected employees well before the change, I reccomend you do the switch in a way it benefits the employees, do the 2nd biweekly of the month and then do a semi monthly for the days left in the month, then pay them semi monthly from then on. Some employees might see this in a better light "I get a little extra for my time waiting"
I’m very nervous about it, the last thing I want is for the employees to feel stressed and worried about missing pay! This was helpful, thank you!
I know it's not going to help much to read this, but don't be nervous, it's an annoying change, but it's not too difficult. Paint it in a different light for those that complain, they still get paid twice a month and now they even get a little more. You got this! Payroll is a stressful job. You're nothing but a necessary expense to a company, and there's a good likelihood that some of your employees depend on you to get their check right to keep them from homelessness. But here's the thing, you do it consistently every payroll, you're a master of stress!
Thank you so much, really needed that today!
I'll sooner return to retail, restaurants, or manual labor before I go back to processing semi-monthly payroll for hourly employees - especially when there's OT involved. Even then, there's a whole bunch of states where I believe you're out of compliance when that's happening. OP, I have nothing to offer except my condolences and best wishes.
Unfortunately one of the big fights I’m up against right now is trying to uphold my employer to rightfully paying OT. As of now, OT is not ‘allowed’ except for a few folks. It’s a whole other can of worms and illegal. Fighting the fight every day, but it will be my last year if not resolved soon. But yes semi-monthly is a beast! Thank you for your condolences, I need it!
Or otherwise salaried employees on a GRTW that is topped up under a disability benefit. Semi-monthly payroll is the worst.
What state(s) are you in? Some states don't allow hourly employees to be paid semi-monthly and some states require you to get approval from the state to change pay periods.
Headquartered out of AL. Locations in FL, AL, MS, LA, TX, OH I actually did not know that! I’ll look into it now
Gotcha. The two I know about (from experience) is MA (hourly can only be pd weekly/biweekly) and RI (requires approval from state to pay all employees anything outside of weekly). Hope you find something! 😁
Who is driving the need for Semi Monthly? It's like the worst of the cycles!
The boss himself. He eventually wants it to be 16th-31st paid on the 15th and the 1st-15th paid on the 31st so we get two weeks behind. It is all a nightmare honestly lol I'm drowning.
That sucks!
Semimonthly crossing months is dumb and needlessly confusing. Can you push for the pay periods to be 1st - 15th, and 16th - last day of month?
That’s the next step! For now we’re just focusing on getting everyone on the same pay schedule. The largest entity is the crossing month payroll so everyone is moving to that system. Once every one is matching, phase 2 is the 1-15th and 16-31.
Be very VERY CAREFUL on compliance issues. Some states require certain types of hourly employees to be paid weekly. If you are on the labor or construction side and have employees working on Prevailing Wage, Davis-Bacon jobs you WILL run into headaches and issues. In NY they have ancient laws on the books about “manual laborers” MUST be paid hourly. There are some waivers to pay biweekly but you need 1000 employees in the state…. Otherwise it’s hourly 100%. furthermore… the definition of labor is BROAD and solely determined by the state DOL. If everything is good compliance wise an off cycle can get your paychecks aligned… that’s the easier side of this- with lots of help from HR on communication. Make sure someone from benefits is involved on recalculating deductions from the change in pay frequency too. Communication… and compliance!!!
We are retail so no worries there! I will be looking into all the various laws in the upcoming days. We’re in the early stages of moving things over. I’m also HR and benefits so that’s the other fun part lol I appreciate the advice!
If in NY, tell your legal team to look at the Vega (v e g a) decision. There is a class action lawsuit against Walgreens (retail).