Policy
THIS INTERIM POLICY EXPIRED ON DECEMBER 31, 2021.
Original Issuance Date: May 19, 2021
Expiration Date: December 31, 2021
1. Interim Policy Purpose
On July 18, 2021, the UW System is converting all employees currently paid on a monthly basis to a biweekly pay cycle. As a result of this change, the last monthly check received by employees on July 30th, 2021 will be less than previous monthly paychecks. Specifically, this paycheck will cover July 1, 2021 through July 17, 2021 for annual contract employees. The paycheck covering the pay period lasting from July 18th, 2021 through July 31st, 2021 will be paid to employees on August 12th. To assist employees with any personal financial issues associated with the implementation of this pay schedule change, the UW System is establishing an interim policy to allow employees to make a request for a one-time salary advance which is repaid via payroll deduction over the following six pay periods in calendar year 2021.
2. Related System Administrative Policies:
This is a new interim policy. It is related to the pay schedule changes created by the 2021 revisions to SYS 230, Salary & Fringe Benefit Calculations, and SYS 215, Payment Methods and Timing for Payroll.
3. Scope
This policy applies to any continuing UW System employee paid on a monthly basis prior to July 18, 2021 subject to the other provisions contained herein.
Student hourly employees are excluded from the scope of this policy. UW-Madison employees are excluded from the scope of this policy.
4. Definitions
Qualified Employee: A continuing UW System employee paid on a monthly basis prior to July 18, 2021.
Work Week: For a position designated as 1.0 Full Time Equivalent (FTE), a standard work week is presumed to be 40 hours.
Pay Period: A two-week period starting on a Sunday and ending on a Saturday; published annually.
5. Interim Policy Language
Institutions may offer qualified employees a salary advance to cover personal expenses during the first month following transition from a monthly basis to a bi-weekly basis pay schedule. Advances of up to 100% of one normal biweekly pay period, based on the FTE recorded in the HR system at the time of the conversion, may be granted. (As an alternate calculation, advances of up to 50% of the employee’s normal monthly pay, prior to the transition, may be substituted as the maximum amount.)
Lump sum payments are not included in the amount eligible for the calculation. A Transitional Salary Advance Request and Payroll Deduction Form must be signed by the employee prior to the advance being processed. Salary advances under this policy are to be repaid in full via payroll deduction of equal amounts from the employee’s next six paychecks, following the paycheck in which the advance is granted. Any amount remaining unpaid as of 12/30/2021 shall be withheld from the paycheck dated 12/30/2021.
Under no circumstances may the amount of the advance exceed $9,999.00. If an employee leaves the institution before the advance is repaid, the institution is authorized to take the full outstanding balance from the last payroll check or collect from the employee.
A. Salary Advance Request & Payroll Deduction Process
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- Employee submits the required Transitional Salary Advance Request and Payroll Deduction Form through appropriate institution channels.
- Information is provided by the institution to UW Shared Services.
- UW Shared Services enters a payroll deduction for “Salary Advance Repayments” in accordance with the signed Transitional Salary Advance Request and Payroll Deduction Form.
- The payroll calculation will result in a payroll deduction and produce an Inter-Unit Journal (IUJ) to reimburse the funding source of the Salary Advance.
- The institution’s Business Office will reconcile all salary advances issued against repayments to ensure compliance with UW policies.
6. Supplemental Documents
Transitional Salary Advance Request and Payroll Deduction Form
FAQs
Implementation Guidance and FAQ’s for Salary Advances for Employees Transitioning to a Biweekly Pay Schedule
What is this new program?
This is a new, limited, salary advance program designed to help employees manage personal finances which may be impacted during the period of transition from a monthly pay schedule to a biweekly pay schedule.Why are we implementing this program?
The UW System cares about its employees. The shift of the pay schedule will result in a change to the timing that employees receive their pay, and the UW System recognizes that this may create challenges for employees who have scheduled their bills around the old pay schedule. To mitigate these challenges during this transition period, the UW System is allowing transitioning employees to request a salary advance during the immediate transition period. Employees who use this program will receive their pay at the same time, or sooner, than they would have received it under the old monthly system.Who is eligible for salary advances under this new program?
This program is available to any continuing UW System employee who has been paid on a monthly basis prior to July 18, 2021, and who is being paid on a biweekly basis on/after July 18, 2021.When can I get an advance under this program?
The advance is intended as transitional relief only. For this reason, the salary advance can only be granted on one of your first two paychecks following the transition date of 7/18/21.- For 12-month employees, this means the advance must be received on the 7/30/21 paycheck or the 8/12/21 paycheck.
- For most summer contract employees, the advance must be received on the 7/30/21 paycheck or the 8/12/21 paycheck.
- For academic year employees with a start date between August 15 and August 28, the advance must be received on the 9/9/21 paycheck or the 9/23/21 paycheck.
- For academic year employees with a start date of 8/29/21, the advance must be received on the 9/23/21 paycheck or the 10/7/21 paycheck. Advances cannot be granted on paychecks after 10/7/21.