Issues to Consider When Changing from 24 to 26 pays or 26 to 24 pays
From 26 to 24 Pays:
- The pay per period on stretch pay jobs will be increased. Employees may need to file new W-4 forms for taxation purposes at the Federal and Ohio levels.
- Taxes withheld on a percentage basis will increase with the increased pay per period.
- Voluntary Payroll Items withheld every payroll will have to be reviewed to ensure the withholding amount is correct due to 2 less pays.
- Annuity type Payroll Items that are a percentage withholding may have to be reconsidered by the employee or annuity company so the maximum contributions as permitted by the IRS are not exceeded.
- Retirement buy-back calculations may have to be resubmitted to the retirement systems.
- New payroll schedule will have to be filed with STRS.
- Payroll Items with maximums to withhold may need adjustments.
- Pay accounts with maximums to charge may need adjustments.
- The number of days between payrolls will become inconsistent due to the fixed pay dates falling on a weekend or holiday. This will cause days worked on the pay stubs to be irregular as well as the amount going into accrued wages.
- A 24 pay cycle will make direct deposit transfers more irregular. Depending on what day of the week the pay date falls, the transfers may need to be made the preceding week taking into account all weekends and bank holidays, which many times fall on a Monday.
- If all jobs are not changed at the same time, the district will have to run multiple pays until all jobs are on the same 24 pay cycle. This will likely occur after all new contracts have been activated.
From 24 to 26 Pays:
- The pay per period on stretch pay jobs will be decreased. Employees may need to file new W-4 forms for taxation purposes at the Federal and Ohio levels.
- Taxes withheld on a percentage basis will decrease with the decreased pay per period.
- Voluntary Payroll Items withheld every payroll will have to be reviewed to insure the withholding amount is correct due to 2 more pays.
- Annuity type Payroll Items that are a percentage withholding may have to be reconsidered by the employee or annuity company so the maximum to contribute as defined by the IRS is not exceeded.
- Retirement buy-back calculations may have to be resubmitted to the retirement systems.
- New payroll schedule will have to be filed with STRS.
- Payroll Items with maximums to withhold may need adjustments.
- Pay accounts with maximums to charge may need adjustments.
- A 26 pay cycle will make direct deposit transfers more regular.
- If all jobs are not changed at the same time, the district will have to run multiple pays until all jobs are on the same 26 pay cycle. This will likely occur after all new contracts have been purged.