In 2013 the District moved to bi-weekly payrolls creating 26 pay periods annually for contracted employees due to the implementation of the TrueTime timekeeping system. A bi-weekly pay schedule results in a calendar ‘creep’ effect taking place due to the difference in timing between two-week pay periods, a 365-day calendar and the additional days for leap year. This is most commonly corrected with a 27th pay period. As the calendar creeps, the first day of pay for employees beginning a new contract cycle also creeps. For example, this year, 10 month contracted employees (teachers and administrators) received their first paycheck for the 2019-20 school year on August 23, 2019, although they did not begin work for the year until August 27, 2019. The pay date will continue to move forward until the calendar “creep” is addressed.
With any business/organization an employee is normally expected to work a one or two week period and then be paid either one or two weeks after the end of the work period for the hours/time worked. Paying an employee before work is performed is a poor business practice and causes difficult issues, especially if an employee leaves before performing the work. It also allows for errors to occur. Auditors have indicated that the District needs to address the issue of paying employees before they begin working.
In an effort to address this “creep” issue, the District will be moving to 27 pay dates, effective the 2020-21 and 2021-22 school years. This means that salaries for contracted employees will be divided by 27 paydays instead of 26 paydays. The annual contract amount does not change, however, because there are more pay dates, the pay is less on each paycheck. For example, an employee with a salary of $50,000 divided by 26 paydays is $1,923. When the same salary is divided by 27 the pay is $1,852. However, by the end of the contract year, the entire pay received remains $50,000.
The District will go back to 26 paydays effective the 2022-23 school year and will not have to address this calendar “creep” issue for another 11 years.
We are hoping that by providing this communication to you at this time it will allow you sufficient time to budget and prepare for the change to 27 paydays, which will not be effective until the 2020-21 school year. Reminders of these changes will be sent to you throughout the year.
Please take a moment to review the presentation above and for further clarification, join us at an upcoming Q & A Session with me, Tom Owens, Director of Business Services and Beth Bakunowicz, Director of Human Resources.
We appreciate your understanding of this issue and apologize for any inconvenience this change may cause you. Please do not hesitate to contact us with any questions or concerns.