Biweekly Lag Pay Implementation

State of Colorado Biweekly Pay Implementation

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.

What does this mean for employees?

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:

  • July 2 - Employees paid for June
  • July 20 - Employees paid for July 1-6
  • August 3 - Employees paid for July 7-20
  • August 17 - Employees paid for July 21 - August 3
  • August 31 - Employees paid for August 4 - 17

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 dpa_biweeklypay@state.co.us.

Payroll Transition Calendar

Pay During the Transition

Pay Date Pay Period Pay Example ($55,200/year)

July 2

June

Gross Monthly

$4,600

July 20

July 1 - 6

Transition

$1,062

August 3

July 7 - 20

Gross Biweekly

$2,123

August 17

July 21 - August 3

Gross Biweekly

$2,123

August 31

August 4 - 17

Gross Biweekly

$2,123

Transition Resources

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.

Benefits Holiday

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.)

Interest-Free Loan

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:

Loan Amount Repayment Amount per Pay Period Calculation

$1,170

$15

$1,170 loan ÷ 78 payments* = $15 payment/period

$1,950

$25

$1,950 loan ÷ 78 payments = $25 payment/period

$3,900

$50

$3,900 loan ÷ 78 payments = $50 payment/period

$5,850

$75

$5,850 ÷ 78 payments = $75 payment/period

$7,800

$100

$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.

Frequently Asked Questions

Legislature

Lag and Biweekly Pay Principles

The State’s Transition

Impact to Employees

State Assistance

Preparing for Biweekly Pay

HRWorks