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The State anticipates moving all employees to biweekly lag pay in July 2018. Employees will be paid every two weeks and will receive their check two weeks after the end of the pay period. With lag pay, employees will complete your timesheets for a two-week pay period. The information will be used to pay employees and allocate labor costs. This is consistent with best practice, simplifies the payroll process, and enables the State to continue to comply with federal timekeeping reporting requirements.
The State is moving to lag pay because it improves accuracy and timeliness of employee pay, and as a result allows the state to file more timely financial statements. This also creates the opportunity for employees to receive overtime and shift differential compensation in the same period worked. The shift to biweekly pay allows employees to receive more frequent paychecks - every other Friday.
The State needs to move to biweekly lag pay to coincide with the implementation of the State’s HRWorks, an integrated system that will implement best practices and improve human resources and payroll functions. The Department of Personnel & Administration is working closely with the State legislature and governor’s office to ensure this transition will occur smoothly, including working on legislation to enact this change.
Employees will continue to earn the same amount. The payment of your annual salary will be divided over 26 pay periods rather than the current 12 pay periods. During the month of July, the transition to lag pay will cause a delay in your pay. (Employees who are currently paid biweekly will be unaffected.) The pay schedule will be as follows:
The Department of Personnel & Administration (DPA) will provide employees with tools, calculators, and resources to assist with the move to biweekly pay. DPA will regularly update this website with information to help as it becomes available. If you have questions, send them to email@example.com.
July 1 - 6
July 7 - 20
July 21 - August 3
August 4 - 17
We understand this will be a large change and may have a significant impact on employees as they adjust their budgets (e.g. automatic bill deductions) to the new schedule. To help with this transition, the state will offer employees a low interest loan to help with the transition. As well, DPA will provide employees with tools, calculators, and helpful information to assist with the move to biweekly pay.
To assist with the transition to biweekly lag pay, the State will implement a benefits holiday for July 2018. For those employees who are enrolled in the State's Kaiser or UnitedHealthcare plans, the State will pay the employees’ deductions to health and dental benefits for that month. (This will not apply to institutions of higher education.)
To help employees prepare for the transition, the state will offer employees interest-free loans. The purpose of this loan is to allow employees to have the same take-home pay at the end of July as they would under the current pay structure.
Employees will be able to take a loan for up to 17 days of your individual take-home pay. If an employee chooses to take a loan, payments will be automatically deducted from their biweekly paychecks beginning August 3 for three years. If they leave state service before the loan is repaid, the remaining balance owed will be deducted from their final paycheck. There will be no penalty for paying off the loan early.
Examples of a loan repayment structure:
$1,170 loan ÷ 78 payments* = $15 payment/period
$1,950 loan ÷ 78 payments = $25 payment/period
$3,900 loan ÷ 78 payments = $50 payment/period
$5,850 ÷ 78 payments = $75 payment/period
$7,800 ÷ 78 payments = $100 payment/period
There will be no credit check or verification of assets to qualify. Simply, if you work for the State of Colorado and will be transitioning to biweekly pay, you qualify for the loan.
By the end of April, employees will receive an email message that will explain individual loan terms and how much will be available. Employees do not need to accept the full amount. They can choose the amount appropriate to you and your situation. In May, employees will elect if and how much they would like to take. Loans will be disbursed by electronic funds transfer no later than July 31.
If the legislature fails to pass a bill moving the State to biweekly lag pay, current law dictates that the State will move to semi-monthly lag pay at some point after the implementation of the new HRWorks program.
If you are a non-exempt employee (meaning you are eligible for overtime pay and comp time — approximately 65% of the State’s workforce), your pay will vary from pay period to pay period based on the number of hours you work. The calendar below shows an example of a semi-monthly pay schedule. The graph below provides an example of what paychecks will look like in a semi-monthly schedule based on a custodian’s salary.
If you are an exempt employee (meaning you are not eligible for overtime), your annual salary will be divided evenly over 24 pay periods.
The State will not implement a benefits holiday for the month of July if a bill fails to pass. As well, current law does not allow for the issuance of no-interest loans to State employees to assist with the transition.
With lag pay, an employee receives a paycheck for work already performed, including overtime. With pay current, an employee is paid based on the number of expected hours that the employee is projected to work. When projected hours do not match actual hours, adjustments to the employee’s next paycheck must be made manually.
The State is moving to a biweekly payroll cycle with a two-week lag. The two-week lag means that an employee performs services during a two-week period and is subsequently paid for such services on the pay date that occurs two weeks later. The employee is paid every other week or 26 times each year.
Gross pay is your pay before tax withholdings and other deductions are taken. Gross pay does not include overtime, shift, or pay differentials.
Net pay is the amount shown on your pay stub. This is your gross pay minus tax withholdings and deductions. Tax withholdings federal, state, and local taxes. Deductions may include but are not limited to PERA contributions, 401(k) contributions, health insurance premiums, flex spending account contributions, ECO pass, and parking. It is important to remember that additional direct deposits also are shown as deductions on your paycheck.
Take home pay includes all of the pay you have the State deposit into your bank account(s).
The State is building a new Human Resource Information System, HRWorks, that will automate statewide business processes for payroll and human resources management functions. As part of the HRWorks implementation, the State is adjusting business models to align with best practices, including converting all State employees to a biweekly lag pay cycle. The transition to biweekly pay is also needed to comply with federal requirements regarding timekeeping records.
Today, State employees who are paid monthly are “paid current” or on the last working day of each month for that same month's work. Employees complete their timesheets after payroll runs. With biweekly lag pay, employees complete timesheets for actual time worked and this is used to calculate payroll and allocate labor costs. This enables the State to comply with Federal timekeeping requirements. It simplifies the payroll process, reduces the amount of adjustments, and avoids situations where employees need to repay the State. It is also best practice in public and private sectors.
State employees are paid either monthly or biweekly (every other week). If you are already paid biweekly, your paycheck and pay period will be unaffected. If you are paid monthly, you will be affected by the change to biweekly payroll starting in July 2018.
The State anticipates the payroll transition to biweekly lag pay will occur in July 2018. The State is working with the General Assembly on a bill to make the change to biweekly lag pay. (Current statute allows for the transition to semi-monthly lag pay.)
The State is converting all State employees to a biweekly lag pay cycle. With biweekly lag pay, employees are paid every two weeks (26 times a year) for work performed two weeks previously. By making the change from paid current to lag pay, the State is able to pay employees more efficiently and accurately. The transition to lag pay will create a delay in the cash flow of current monthly employees in July.
The initial schedule for biweekly lag pay is:
In order to calculate your pay:
For example, if you earn $27,156 in annual gross pay, your paychecks will be for:
For example, if you earn $55,220 in annual gross pay, your paychecks will be for:
No. Monthly employees will receive their June paycheck on July 2, 2018.
If you know your annual gross pay, divide it by 26 (the number of biweekly paychecks in a calendar year):
Biweekly gross pay = annual gross pay ÷ 26
For example, if you earn $27,156 in annual gross pay, your biweekly gross pay will be $1,044.46, which you will receive every other Friday. This amount is calculated as follows: $27,156 ÷ 26 = $1,044.46.
For example, if you earn $55,200 in annual gross pay, your biweekly gross pay will be $2,123.07, which you will receive every other Friday. This amount is calculated as follows: $55,200 ÷ 26 = $2,123.07
If you know your monthly gross pay, multiply it by 12 (months in the year) and divide by 26 (the number of biweekly paychecks in a year):
Biweekly gross pay = monthly gross pay × 12 ÷ 26
For example, if you earn $2,263.00 in monthly gross pay, your biweekly gross pay will be $1,044.46, which you will receive every other Friday. This amount is calculated as follows: $2,263 × 12 ÷ 26 = $1,044.46.
For example, if you earn $4,600 in gross monthly pay, your biweekly gross pay will be $2,123.07. This amount is calculated as follows: $4,600 × 12 ÷ 26 = $2,123.07
This transition to lag pay will create a delay in the cash flow of current monthly employees during July 2018. (If you are already paid biweekly, your paycheck and pay period will not be affected by the transition to biweekly lag pay.) The delay in cash flow only occurs for the initial month of moving from current monthly pay to biweekly lag pay. For new employees who start their jobs after biweekly pay is implemented, their first two-week check will be issued at the end of the next biweekly pay period.
You can obtain your gross monthly pay by logging into Employee Self Service at https://ess.state.co.us/ess/.
While some employees may be able to manage the shift in their cash flow on their own, the State recognizes that others may need assistance with the transition. As such, the State will offer a loan. This loan would not take the place of or advance a paycheck, but simply assists employees with their cash flow in the month the lag pay cycle begins. Details of how the loan works will be forthcoming.
The State is offering loans to assist the employees with their cash flow during the transition month of July 2018. The intent of the loan is to make the employee whole from a cash standpoint for July 2018.
Employees will need to adjust personal budgeting to fit the new biweekly pay cycle (every other Friday). Employees may wish to start by reviewing monthly bills and expenses to determine if changes need to be made. Special attention should be directed at both automatic payments and deductions from paychecks. Employees can save now to reduce the need for a loan in July 2018.
Employees should read all communications about the change to biweekly pay as well as review all of the website, including FAQs.
The Department of Personnel & Administration, Division of Human Resources, and Central Payroll Unit are working with departments to communicate changes and resources available to State employees. For more information visit this biweekly lag pay implementation website regularly.
If you have questions, send them to firstname.lastname@example.org.
Information sessions will be held throughout the state starting in March. At these meetings, employees will have an opportunity to learn more about the change to biweekly lag pay and ask questions. Details about the information sessions will be sent from email@example.com.
HRWorks is an information system or managed service that provides an application for HR management functions (e.g. core human resources functions, personnel administration, position management, timekeeping, leave management, payroll, and labor allocation). The State has selected CGI and Workday to implement the new HRWorks, which will manage human resources and payroll functions statewide. Find more information at the HRWorks website.