Sometimes a group will decide to change pay frequencies mid-year: Monthly to weekly, bi-weekly to bi-monthly, etc. If a group needs to change their payroll group mid-year, there are some things to be aware. We've outlines the steps and best practices for updating the payroll frequency.
What information do you need?
Who is changing pay pay frequencies?
Are all employees changing pay frequencies or just a particular class? Find out who is being impacted by the payroll change so that you know what information you will need to gather before hand.
When is the payroll change occurring?
You'll want to find out when the group is changing pay frequencies. We are not able to future date a payroll change effective date. Let's say it's October and the group tells you that there are changing their payroll from 26 deductions to 24 deductions effective 12/1. You will need to wait until 12/1 or after to update the payroll for the group.
What data is needed?
Before you make the change, we would recommend pulling a payroll deduction report. If anything happens during the payroll change and you need to refer back to what their original deductions were, you will have them readily available.
More importantly, CDH/cafeteria enrollments will not be updated automatically when a payroll change is made. You will want to pull a Cafeteria and/or HSA report with the employee's annual elections so that you can re-enroll the employees after payroll has been updated.
What are the steps?
Create the new payroll group with the new pay frequency. For instructions on creating a payroll group, please see Payroll Setup.
Create an import template. An import is the quickest way to update the payroll group for employees. You can use a Row Based report to create an import template. Just pull SSN, First Name, Last Name, and Payroll Group as your fields. You can then just update the Payroll Group column with the name of the new Payroll Group and import.
Import the payroll change file. From the company's Home tab, select Import Employees and Enrollments under Helpful Tools & Information. You will then be able to start a new import. The file should be imported as an employee census. As long as the file only includes these 4 columns, no other data will be impacted.
Deductions will not automatically be recalculated when the employee is assigned to the new payroll group. You will need to manually recalculate the payroll calendar to reflect the correct deductions based on the new pay frequency. To do this, simply add a date to the payroll calendar and save, then go back in and remove the date and save. This will prompt a recalculation at the top of your screen. Just click "Resolve" until you see a button that says "Run". This should now reflect the correct per pay deductions for the employees.
Step 5: (Only applies to groups with CDH/Cafeteria Plans)
*If the group does not offer consumer directed health or cafeteria plans, you can skip to Step 6.
As we mentioned before, CDH and cafeteria enrollments will not be updated automatically when a payroll change is made, nor will it be corrected by a manual recalculation. You will need to re-enroll the employee into the CDH/cafeteria plan to show the correct contribution amounts based on the new pay frequency. You can use use the Cafeteria import template to import the enrollments back into the system.
After you are finished with your imports and recalculations, you will want to audit your data. Make sure all employees' deductions have been updated to reflect the correct number of deduction dates.