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Annual Notice on Special Transactions for Biweekly Payroll

July 3, 2013 | In Administration

This memorandum is the annual notice regarding special transactions that are processed to accommodate the biweekly payroll calendar.  PLEASE NOTE THAT FISCAL YEAR 2022-23 WILL CONTAIN 27 BIWEEKLY PAYROLLS INSTEAD OF THE USUAL 26.  For State Funds, budget for permanent positions will be accumulated over the next 10 years and carried forward at each fiscal year-end in central reserve accounts.  The budget will be allocated during FY 2022-23 to fund the additional biweekly payroll occurring on June 30, 2023.  Salary expenses for permanent positions representing one day of a biweekly payroll will be posted to departmental State Funds accounts in July 2013 for FY 2013-14 and in subsequent fiscal years.

Contracts and Grants are time-limited awards and are not impacted by the “27th biweekly” payroll.  For other Non-State Funds, which include Facilities and Administrative (F&A) Funds, campus departments should ensure that sufficient salary and benefit budget will be available in FY 2022-23.

The 26 biweekly payrolls provide payment for 260 work days.  Fiscal Year 2013-14 has 261 work days.  Since SPA staff members are paid for 260 work days within the fiscal year, special expenditure transactions are necessary to obligate and use State Funds budget for the additional work day within the fiscal year.  A total of 10 work days will be accumulated over the next 10 years so that funding for permanent positions will be available for a “27th biweekly” payroll that will occur on June 30, 2023.

The special expenditure transactions for the biweekly payroll address the budget issue for the “27th biweekly” payroll.  The University budgets are for a full fiscal year, but the 26 biweekly payrolls span 364 days of the 365 (366 in leap years) days in a fiscal year.  Therefore, there is usually one workday (sometimes two workdays) that roll forward at the end of the fiscal year and are paid on the very next biweekly.

The full annual salaries for SPA staff are paid over the 26 biweeklies plus one or two days in the very next biweekly.  This is mentioned to distinguish between the budget issue and the salary calculation issue for SPA staff paid on the biweekly payroll.  It is important to note that SPA staff members are fully paid their annual salary over the 26 biweeklies plus the remaining day (or two in some years) that is paid in the very next biweekly.

I hope this information provides useful background for the special expenditure transactions for the biweekly payroll.  Thank you.