Wednesday, December 3, 2008

A Week Behind Each Payroll~

I spoke with our payroll person yesterday and yes, the fact I moved from salary to hourly has meant that my pay cycle changes. I'm not sure I understand why-previously, I got paid on the 1st of the month (covering the 16th-31st) and on the 15th (covering the 1st-15th). When I was salaried I got paid that week for that week. Now that I'm hourly, I will be a week in arrears due to the date they transmit payroll to ADP. I'll get paid this 15th for last week and this week, they transmit payroll the middle of next week and that week won't be on that check. I'm trying to remember if my payroll person had this conversation with me and I forgot it (or more likely blocked it out) or if we did not. I've got to pay better attention to these things. I've got to ask questions, I've got to take better care of myself.

What I don't get is why I can't get paid as hourly the same as I did salary in terms of what should be in my paycheck. I'm just not seeing the reasoning behind it. All it means is right now I have less money in my account than I would like and some bills will have to wait until the 15th to get paid (thank goodness they are not due until well after the 15th). I don't want to dip into my E-Fund to "make up" the difference because I'm not feeling disciplined enough at the moment to "restock" the E-Fund from my new payroll schedule. I will just do without.

The only bummer to all of this is I really needed to go grocery shopping to get food for my weekend job. I was "assigned" a food cupboard so I can keep a stash of food at the farm and not have to eat out. I'll shop out of my own pantry for now and just pick up the minimal amount of other food. Ah well....

4 comments:

Les@SpillingBuckets said...

A similar thing happened when I went from hourly to salaried, but in reverse (i got paid twice in 2 weeks)

Here (at least) salaried employees are paid on the 1st and 15th, and hourly employees are paid every two weeks - which isn't quite the same. It's probably a similar situation at your job.

Shevy said...

I think the reasoning behind it is that salaried employees, at least in theory, get paid the same amount all the time on their cheques.

If your monthly salary is $3,000 and you get paid twice a month then every cheque should be for $1,500 gross and the deductions should always be the same.

That makes it very easy to run salary cheques. They can be set up once and they don't need to be error-checked etc.

Hourly employees, on the other hand, may not always work the same number of hours, may work overtime, etc. The deductions have to be figured each and every time and every cheque may be for a slightly different amount. All those things mean more work in preparing the cheque.

That said, I get paid every 2 weeks on Wednesday. Our payroll cutoff is the Friday before (and you just put the number of hours you expect to work that day when you put in your time sheet in the middle of the day). Most of the prep is done on Friday, but it isn't finalized and sent to ADT until Monday. Pay is direct deposited just after midnight Tuesday night, for access on Wednesday morning.

That's a shorter turnaround than your organization. But there does need to be some lag time.

Bouncing Back said...

Yes, as a salaried employee I would techincally work the same hours each week and that has not changed since I went hourly. I can fully understand if my scheduled varied week to week, but it's pretty much set in stone. I have all my hours "set up" for the rest of December. I went from a salaried employee of 40 hours per week to an hourly empolyee of 28 hours per week. My frustration is I worked the reduced hours each week with no change and still am "a week behind". No matter if someone is hourly or salaried, we still get paid on twice a month. Plus our company is very small (we are talking a dozen employees, most of them contract workers to boot).

Admittedly, part of it is a frustration on my part, I was "asked" to take the reduction in hours, but I was not fully told that my pay schedule would change. I would have hoped or thought that I could have been kept on the same "cycle" so to speak. Ah well.

undercover vixen said...

yea that's how it is for hourly wage earners (think to your first job). They get paid AFTER they submit their hours...to get vacation or sick time or any other thing... you should see if you still get paid vacations and what not