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Hi Mike
First of all let me state that my experince in doing this is not within
a
Meditech Payroll environment.
I have done this not once... not twice... but three times. When you do
this there are several considerations. The first is whether you want the
lag period between the end of a pay period and when the employee receives
their pay to remain the same.
The first time we did this we were merging two site that had different
lag
periods mentioned above. One site was paid five days after the end of the
pay period and one site was paid twelve days after the end of the pay
period. What we did in this case was advance the first site a weeks net pay
which was then clawed back over a one year period. At the end of this
period all employees were on the same schedule being paid twelve days after
the end of a pay period.
Deductions
The second thing we had to look at was what pay period deductions were
taken and the coverage period for which they were taken. In essence we had
to make sure that we didn't "miss" a deduction coverage period.
Example
A deduction for dental is taken on the first pay of the month and covers
the month for which the deduction was taken. Because we moved the pay ahead
on the first pay of the month, it became the last pay of the month and the
dental deduction was not taken. Your employees still have dental coverage,
but the provider of that coverage did not receive their remittance for the
transiion month.
As well any deductions that may be based on the number of pays in a year
could be effected and this effect should be reviewed.
Benefits
This is where the number of pays in a year is a crucial factor. If you
accrue vacation, sick, holiday benefits based on time worked, that is
usually a calculation based on the number of pays in a year. You should be
sure that the number of pays in a year does not change. I believe that this
was the reason that we opted for the advance and not introducing an addition
pay cycle into the payroll year. By doing the advance, the number of hours
the employee is paid in a year does not increase.
Otherwise, in our case, the employee could have ended up being paid
1987.5
regular service hours in a year instead of the contracted 1950. Unions will
normally react to this after the point of no return and insist on some sort
of reimbursement for the extra benefits that should have accrued.
Taxes
Should you opt for the advance, you may also consider when the actual
conversion will take place. I would suggest at the beginning of a payroll
year. In Canada that in in January. The reasons for this are:
1. At the beginning of the payroll year, you are starting with as
clean a
slate as possible. There are no year to dates values for deductions (not
exactly always true but as clean as possible)
2. An advance in Canada will be a taxable benefit as an interest free
loan
should the term of the advance extend from on payroll year into the next. I
assume that the same is true in the US. If this is the case then giving the
advance at the start of the payroll year give as long a period as possible
to claw it back from the employee without causing undue hardship on the
employee.
That is all I can think of for now. If you have any specific questions,
you may EMail me directly. If I do not know the answer, I should be able to
put you in touch with someone who may be able to point you in the right
direction.
Hope this Helps
Ken
-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] Behalf Of MIKE VON MOLL
Sent: Thursday, June 22, 2006 10:38 AM
To: meditech-l@MTUsers.com
Subject: [MEDITECH-L] (no subject)
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We need to move our bi-weekly payroll to the week that we are not currently
on. So we anticipate having one WEEKLY payroll and then going back to
BI-WEEKLY payroll. Does anyone have experience moving PAYPERIODS? Are there
any known pitfalls that we need to watch for?
Thanks in advance for any advice or assistance.
Michael Von Moll
Clinical Systems Programmer/Analyst
Sentara Obici Hospital
Suffolk VA 23434
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