Pay Date Change FAQS
Contents
1About the pay date change
1.1Why is ACU changing the pay date?
1.2Who is affected by the change to the pay date?
1.3What does the pay date change involve?
1.4If I’m paid one week later, does this mean I will be paid one week less?
1.5Can I continue to be paid on the existing pay date?
1.6When is the change to the pay date going to happen?
1.7Is there a risk that I won’t be paid on the new pay date of 12 November 2014?
1.8What support will be provided to staff?
2 Annual Leave Loading (applies to continuing and fixed-term staff only)
2.1Am I entitled to annual leave loading in 2014?
2.2What is the value of annual leave loading?
2.3When will annual leave loading be paid in 2014?
3Cash out of annual leave and long service leave (applies to continuing and fixed-term staff only)
3.1Am I entitled to cash out annual leave?
3.2Am I entitled to cash out long service leave?
3.3How do I apply to cash out annual leave or long service leave?
3.4Will the “guaranteed approval” apply to all cashed out annual leave and long service leave requested?
3.5Are there tax implications of cashing out annual leave and/or long service leave?
4Preparing for pay date change
4.1What do I need to do now to be ready for pay date change?
4.2What if I'm on leave when the pay date change occurs?
5Effect of pay date change on personal arrangements
5.1Do I need to take any action in relation to my UniSuper arrangements as a result of the pay date change?
5.2Will the pay date change affect my salary packaging arrangements?
5.3I have automatic deductions that are taken from my bank account to pay for things like my mortgage, insurance, etc. Does this mean I have to change them because I'll be paid on a different week?
5.4I make payments through payroll deductions – how will the pay date change affect these?
5.5I make child support payments through payroll deductions - how will the pay date change affect these?
5.6I receive Government Paid Parental Leave - how will the pay date change affect these payments?
6Confidential helpline
6.1Who am I calling when I call the Confidential Hotline (ext 4222)?
6.2What should I expect when I call the Confidential Hotline?
7Further information about the pay date change
1About the pay date change
1.1Why is ACU changing the pay date?
The pay date is being changed to improve the efficiency of the administration and accuracy of each pay. As ACU staff are paid in advance (i.e. before a full fortnight of work has been completed) there is a higher risk of over or underpayments.
The following background may assist to understand this:
- ACU currently operates on a fortnightly pay period which starts on Saturday and concludes 14 days later on Friday. The pay day is on the Wednesday before the end of the fortnight to which the pay period applies, that is, three days in advance. The Payroll cut-off for processing is 12noon on the first Thursday of the fortnightly pay period; that is, the sixth day of the fourteen day pay period.
- The current arrangements originated at a time when ACU was a smaller institution (it is now nearly four times larger); and remuneration and employment arrangements, and the regulatory and compliance environment were simpler.
- The current pay cycle arrangements no longer allow sufficient time for processing and querying of changes which may affect salaries within a pay period. Therefore, over or underpayments are being made which:
- are inconvenient and frustrating for staff, particularly when overpayments need to be repaid or payments are delayed,
- are time consuming and administratively cumbersome to correct for Payroll staff, particularly given the complexities of employment arrangements, taxation, superannuation, salary packaging, child support payments, etc, and
- undermine the integrity of legal requirements for statutory payments, and internal and external reporting.
By changing the pay date and not the pay period, Payroll staff will have more time to process and query changes that occur within the pay period. This will improve accuracy, communication with ACU staff and third parties (e.g.UniSuper, Centrelink, Child Support Agency, etc), data and reporting integrity, and compliance.
1.2Who is affected by the change to the pay date?
The change affects all staff paid through the ACU payroll. This does not include contractors or agency staff (e.g. temps).
1.3What does the pay date change involve?
The change to the fortnightly pay cycle will be achieved by moving the pay date back by one week in November 2014. The pay which would have normally been paid on 5 November 2014 will be delayed for one week and be paid on 12 November 2014. This will be a one off occurrence that will result in staff being paid for days of work already completed rather than in advance.
1.4If I’m paid one week later, does this mean I will be paid one week less?
No, you will be paid for every day you work. The pay date change means staffare paid one week later, not one week less. However, a pay date adjustment is required to move from a pay in advance arrangement (i.e. before a full fortnight of work has been completed) to a pay in arrears arrangement (i.e. after a full fortnight of work has been completed).
It should also be noted that staff employed throughout the whole of the 2014/15 financial year will receive 26 pays.
1.5Can I continue to be paid on the existing pay date?
No, everyone paid through the ACU payroll will be paid on the same day. The pay that is due on 5 November will be moved back by one week to 12 November 2014.
1.6When is the change to the pay date going to happen?
The change to the pay date will take place in November 2014. Key dates are:
- 22 October 2014 last pay in accordance with the current pay schedule. This pay date applies to:
- For continuing, fixed-term and sessional staff, the fortnight of work from 11 to 24 October
- For casual staff, the work claimed and approved up to the Human Resourcesdeadline for payment claims of 16 October 2014
- 12 November 2014. This is the pay date that has been moved back by one week. The pay would have been paid on 5 November before the change to the pay cycle. It applies to:
- For continuing, fixed-term and sessional staff, the fortnight of work from 25 October to 7 November 2014
- For casual staff, the work claimed and approved up to Friday 7 November 2014 when the payment claim is submitted to Human Resourcesby the deadline for payment claims of 5.00pm 6 November 2014
- 26 November 2014. This is the next pay under the new fortnightly pay cycle. The pay applies to:
- For continuing, fixed-term and sessional staff, the fortnight of work from 8 to 21 November 2014
- For casual staff, the work claimed and approved up to Friday 21 November when the payment claim is submitted toHuman Resources by the deadline for payment claims of 5.00pm 20 November 2014.
1.7Is there a risk that I won’t be paid on the new pay date of 12 November 2014?
No. There has been no change to the IT system that runs the pay and therefore any risk has been managed.
1.8What support will be provided to staff?
To assist staff to meet their financial obligations during the pay date change the following measures are available:
- Annual leave loading: for all staff entitled to it, annual leave loading is paid early, on 5 November 2014rather than in December as normally occurs. 5 November is when staff would have been paid if the change to the pay date did not occur. Refer to Section 2 of these FAQsbelow for further information
- Cash out of annual leave and long service leave: eligible staff may apply for cash out leave, with payments being made on 5 November 2014. Refer to Section 3of these FAQs for further information
- Confidential helpline: Staff experiencing financial difficulty or hardship should contact the Confidential Helpline (extension 4222) to discuss individual arrangements.
- Practical information about what to do to prepare for the new pay date: The Pay Date Change Preparation Checklist on the Pay Date Change webpage has been developed to assist staff to consider the financial arrangements that may be impacted by the pay date change and actions that could be taken to minimise the impact.
2Annual Leave Loading (applies to continuing and fixed-term staff only)
2.1Am I entitled to annual leave loading in 2014?
If you are entitled to annual leave then you are entitled to annual leaveloading. Continuing and fixed-term staff are entitled to annual leave and therefore annual leave loading. Casual and sessional staff members are not entitled to annual leave or annual leave loading.
2.2What is the value of annual leave loading?
Annual leave loading is equal to 17.5% of fourweeks’ salary up to a maximum payment which is determined by the CommonwealthStatistician each year. The maximum payment for annual leave loading for 2014 is currently $1357.10 and this maximum applies to all staff at or above Academic Level B Step 6 and HEW 9 Step 2.
A staff member with an entitlement to annual leave loading who is employed on a part-time basis or commenced employment after 1 January will receive a pro-rata amount on annual leave loading.
This schedule provides the value of annual leave loading (gross) for each salary level for full-timecontinuing and fixed-term Academic and Professional Staff.
2.3When will annual leave loading be paid in 2014?
For all staff entitled to it, annual leave loading will be paid early, on 5 November 2014 rather than in December as normally occurs. 5 November is when staff would have been paid if the change to the pay date did not occur.
Staff do not need to take any action to receive this payment as it will be paid to all staff entitled to it.
If a staff member reduces their fraction, takes leave without pay or ceases employment after the loading is paid and before the 31 December 2014 then the University will seek to recoup any annual leave loading to which the staff member is not entitled.
3Cash out of annual leave and long service leave(applies to continuing and fixed-term staff only)
3.1Am I entitled to cash out annual leave?
Staff are eligible to apply to cash out annual leave if they have an annual leave entitlement in excess of forty (40) days (pro-rata for part-time). They may then cash out up to twenty (20) days of annual leave (pro-rata for part-time).
Before initiating a request to cash out annual leave you should consider the taxation implications of doing so. Refer to FAQ 3.5.
3.2Am I entitled to cash out long service leave?
Staff are eligible to apply to cash out long service leave when they are eligible for long service leave and provided that they:
- retain a minimum balance of nine (9) weeks, or
- take a period of long service leave equivalent to the period of long service leave cashed out.
Before initiating a request to cash out annual leave you should consider the taxation implications of doing so. Refer toFAQ 3.5.
3.3How do I apply to cash out annual leave or long service leave?
To apply to cash out annual leave or long service leave, complete the appropriate form for cash out of annual leave and/or long service leave
Follow the instructions on the form and lodge the completed form to HR Advisory Services byno later than12noon on 10 October 2014in order to receive payment on 5 November 2014.
3.4Will the “guaranteed approval” apply to all cashed out annual leave and long service leave requested?
Annual Leave: The guarantee of approval will apply to cash out annual leave provided:
- the staff member is eligible
- the staff member retains an annual leave balance of 20 days in accordance with the ACU Staff Enterprise Agreement
- the request is lodged by 12noon on 10 October 2014
- the payment is to be made on 5 November 2014.
Long Service Leave: The guaranteed approval will applyfor cashed out long service leave provided:
- the staff member is eligible;
- the staff member retains a minimum balance of nine (9) weeks in accordance with the ACU Staff Enterprise Agreement;
- the request is lodged by 12noon on 10 October 2014; and
- the payment is to be made on 5 November 2014.
Approval of combined cashing out and taking of long service leave will be subject to the associated period of long service leave being approved.
3.5Are there tax implications of cashing out annual leave and/or long service leave?
Cashing out of annual leave and/or long service leave will result in an increase in your annual taxable income which may move your income into a different tax bracket. The Payroll Office must apply the relevant tax rate but will seek to minimise the tax impact on the cashed out leave by projecting your annual gross income and applying the appropriate tax rate to the cashed out leave (rather than applying the highest tax rate of 49%). Depending on your circumstances, the cashed out leave could be taxed at the tax rate normally applied to your fortnightly salary but may be taxed at a higher rate. Those most at risk of paying a higher rate of tax are staff whose annual gross income is below but close to the top of a tax bracket. Below are the tax ratesfor 2014-15 which apply from 1 July 2014 (these have been copied from the Australian Taxation Office website).
Taxable income / Tax on this income0 – $18,200 / Nil
$18,201 – $37,000 / 19c for each $1 over $18,200
$37,001 – $80,000 / $3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000 / $17,547 plus 37c for each $1 over $80,000
$180,001 and over / $54,547 plus 47c* for each $1 over $180,000
* Medicare levy of 2% included
4Preparing for pay date change
4.1What do I need to do now to be ready for pay date change?
The Pay Date Change Preparation Checklisthas been developed to help you prepare for the Pay Date change. The Checklist has been designed to allow you to make your notes on it so that you have a record of actions that you have taken and the arrangements that will apply.
4.2What if I'm on leave when the pay date change occurs?
You should review your personal circumstances before you go on leave and ensure you are able to meet any financial obligations that are due around 5 November and each fortnight after that. The Pay Date ChangePreparation Checklist should assist you with your planning.
5Effect of pay date change on personal arrangements
5.1Do I need to take any action in relation to my UniSuper arrangements as a result of the pay datechange?
No. The pay date change will not affect your existing superannuation arrangementswith UniSuper. ACU willnotifyUniSuper of the change to the pay date.
5.2Will the pay date change affect my salary packaging arrangements?
No. The pay date change will not affect your existing salary packaging arrangements with Selectus. ACU will notifySelectus of the change to the pay date.
5.3I have automatic deductions that are taken from my bank account to pay for thingslike my mortgage, insurance, etc. Does this mean I have to change them becauseI'll be paid on a different week?
Each staff member's banking arrangements will be different. Some staff may havesufficient funds to meet fortnightly repayments and prefer not to make anychanges to their arrangements. Other staff may want to adjust their paymentschedules to align with the new pay date. You should start reviewing your personalcircumstances now and ensure you are able to meet any financial obligations that are due around 5 November and each fortnight after that. You mayneed to discuss your circumstances with your financial institution in order tofind out the options available. The Pay Date Change Preparation Checklistmay assist you with this process.
5.4I make payments through payroll deductions – how will the pay date change affect these?
There will be no effect on these arrangements. Your payroll deductions will continue and ACU will notify all organisations to which such payments are made. There will be no additional cost incurred as a result of the pay date change. The automatic deductions will apply as normal to the pay on 12 November and each pay thereafter for as long as the pay deduction arrangements are in place.
5.5I make child support payments through payroll deductions - how will the pay date change affect these?
Payments to the Child Support Agency will not be impacted. Such payments are made monthly by ACU on behalf of staff. ACU willinform the Child Support Agency of the pay date change.
5.6I receive Government Paid Parental Leave - how will the pay date change affect these payments?
Government Paid Parental Leave payment will be aligned with the new pay date. ACU willinform the Department of Human Services of the pay date change. There is no need to take any action.
6Confidential helpline
6.1Who am I calling when I call the Confidential Hotline (ext 4222)?
HR Advisory Services staff in Human Resources will be responsible for receiving calls received through the Confidential Hotline.