Changes to Payroll and Benefits Deductions

Since the integration of UMDNJ and Rutgers, it has been our goal to combine the two human resources and payroll systems into a single system and to align business processes. Before combining the systems, Rutgers and its employee unions reached agreements that would result in staff receiving certain additional benefits, such as an increase in the total number of paid days off from 15 to 17 (not including vacation), and dependent tuition waiver. These benefits were also extended to our employees who are not represented by a negotiating unit. Starting in October 2016, Rutgers began using a single system for human resources and payroll functions, taking a significant step toward aligning processes across Rutgers.

Employees Impacted by Transition to Integrated System

Payroll changes for impacted Rutgers employees are outlined below. These payroll changes apply to employees hired before October 1, 2016.

Employee Group What Is Changing

Salary Payroll Banner

 (Salaried Employees)

How pay is calculated: Beginning October 21st, your gross biweekly pay will be based upon the number of working days in a fiscal year. The 2016/2017 fiscal year has 261 working days.

In order to estimate your gross biweekly pay, divide your base salary for one year by 26.1.

Base salary for one year divided by 26.1 = gross biweekly pay

Example: $50,000 / 26.1 = $1915.70 (biweekly pay)

Salary Payroll Banner

 (Salaried Employees)

Frequency of health benefit deductions: There will also be changes to the frequency of medical benefits deductions, which will be deducted across 24 instead of 26 pay periods. While your biweekly deductions will increase, your premium costs will remain the same for calendar year 2016, and deductions will not be taken from two paychecks each year (which we refer to as a “premium holiday”) during months when there are three paycheck days. The first “premium holiday” will be reflected in your paycheck date of December 30, 2016.

Salary Payroll Banner  (Employees on an hourly pay scale)

  • Teamster local 97
  • IUOE local 68
  • OPEIU local 153
  • HPAE local 5089
  • HPAE local 5135
  • HPAE local 5094 (PH scale)
  • FOP 74
  • CWA 1031 SH scale
  • CWA 1040 JH scale
  • Salary non-aligned
Frequency of health benefit deductions
Hourly Payroll (Banner) Date of pay
PERS Hourly and Salary (PeopleSoft) Frequency of payroll deductions
Paid on an hourly pay scale There will also be changes to the frequency of medical benefits deductions, which will be deducted across 24 instead of 26 pay periods. While your biweekly deductions will increase, your premium costs will remain the same for calendar year 2016, and deductions will not be taken from two paychecks each year (which we refer to as a “premium holiday”) in months when there are three paycheck days. The first “premium holiday” will be reflected in your paycheck date of December 30, 2016.

General Topics

Why are payroll changes happening now?

Since the integration of UMDNJ and Rutgers, it has been our goal to combine the two human resources and payroll systems into a single system and to align business processes. Before combining the systems, Rutgers and its employee unions reached agreements that would result in staff receiving certain additional benefits, such as an increase in the total number of paid days off from 15 to 17 (not including vacation), and dependent tuition waiver. These benefits were also extended to our employees who are not represented by a negotiating unit.

In October 2016, Rutgers began using a single system for human resources and payroll functions, marking a significant step toward aligning processes across the university.

When will payroll changes go into effect?

Employees who have been paid through the Banner payroll system received a final paycheck from that system on October 7, 2016. The first paychecks from the combined system were paid on the following dates:

  • Hourly Payroll: October 14, 2016 for per diem staff part time
  • Salary Payroll: October 21, 2016 for full-time staff, part-time staff, and faculty

Will the pay period change for employees?

After the transition to the combined payroll system, all employees will be on a Saturday to Friday pay week.

Where should an employee that is covered by a negotiations agreement go for help?

Please contact the Human Resources and Payroll Help Desk at (848) 932-3888, or refer to the Human Resources and Payroll project page on this website for additional information.

Human Resources and Payroll Help Desk
Monday-Friday, 7:30 a.m.-6:00 p.m. Eastern
Saturday, 9 a.m.-4:00 p.m. Eastern
Phone: (848) 932-3888
Email: hrpayroll_helpcenter@hr.rutgers.edu

Who is considered hourly employees in the new system?

These employees are known as per diem and overtime eligible.

Who is considered salary exempt in the new system?

These employees follow standard hours of pay and are not overtime eligible.

Who is considered salary non-exempt in the new system?

These employees follow standard hours of pay and are overtime eligible.

 

Salary vs. Hourly in the Banner Payroll System

How has pay changed for salaried employees?

The way your annual pay is calculated has changed. Since October 21st, your gross biweekly pay has been based upon a daily rate of pay which is determined by the number of working days in a fiscal year. The 2016/2017 fiscal year has 261 working days.

In order to estimate your gross biweekly pay, divide your base salary by 261.  This is your daily rate of pay.  Then multiply the daily rate of pay times 10 days (that is the number of days in a payroll period) and that equals your biweekly pay.

Example:

(base salary / 261) = daily rate of pay
$50,000 / 261 = $191.57 (daily rate of pay)
$191.57 x 10 = $1,915.70 (biweekly pay)

If I am on the salary payroll and qualify for overtime, when will I get paid?

If you are on salary payroll and are paid for overtime, your overtime pay for October 2nd through October 15th was to be included in your October 21st paycheck.

Will my benefits change?

No; however, the frequency of deductions will change in the integrated system. Your plan coverage will remain the same. Health, dental and prescription premium deductions will decrease from 26 times per year to 24 times per year. As a result, health benefits deductions will not be taken from two paychecks each year when there are three paycheck days in a month. The first date this will happen in this fiscal year is December 30, 2016.

 

Hourly Employees in the Banner Payroll System

How will pay change for hourly employees?

The date of your pay will change. You received your first paycheck from the single system on October 14, 2016. You will continue to be paid on a biweekly pay cycle. See pay schedule below.

  • October 7 (pay cycle Sep. 11-Sep. 24)
  • October 14 (pay cycle Sep. 24-Oct. 7)
  • October 28 (pay cycle Oct. 8-Oct. 21)
     

Employees Enrolled in the Public Employees’ Retirement System (PERS), and Police and Firemen's Retirement System (PFRS)

As a Public Employees' Retirement System (PERS) and Police and Firemen's Retirement System (PFRS) member, the frequency of PERS and PFRS deductions will change from 24 to 26 times a year, resulting in a lower biweekly deduction. This change was reflected on the pay date of October 7, 2016.