What is this new program?
This is a new, limited, salary advance program designed to help employees manage personal finances which may be impacted during the period of transition from a monthly pay schedule to a biweekly pay schedule.
Why are we implementing this program?
The UW System cares about its employees. The shift of the pay schedule will result in a change to the timing that employees receive their pay, and the UW System recognizes that this may create challenges for employees who have scheduled their bills around the old pay schedule. To mitigate these challenges during this transition period, the UW System is allowing transitioning employees to request a salary advance during the immediate transition period. Employees who use this program will receive their pay at the same time, or sooner, than they would have received it under the old monthly system.
Who is eligible for salary advances under this new program?
This program is available to any continuing UW System employee who has been paid on a monthly basis prior to July 18, 2021, and who is being paid on a biweekly basis on/after July 18, 2021.
When can I get an advance under this program?
The advance is intended as transitional relief only. For this reason, the salary advance can only be granted on one of your first two paychecks following the transition date of 7/18/21.
- For 12-month employees, this means the advance must be received on the 7/30/21 paycheck or the 8/12/21 paycheck.
- For most summer contract employees, the advance must be received on the 7/30/21 paycheck or the 8/12/21 paycheck.
- For academic year employees with a start date between August 15 and August 28, the advance must be received on the 9/9/21 paycheck or the 9/23/21 paycheck.
- For academic year employees with a start date of 8/29/21, the advance must be received on the 9/23/21 paycheck or the 10/7/21 paycheck. Advances cannot be granted on paychecks after 10/7/21.
What is the maximum amount of the advance?
The maximum amount of the advance available under this policy is the amount the employee would receive for one biweekly pay period, under the new pay schedule and not to exceed $9999.00. This amount can be calculated using the formula in section 6.B of UW System Administrative Policy 230, Salary and Fringe Benefit Calculations. Alternately, an employee may request an advance up to a maximum amount of 50% of their pre-transition monthly salary. This amount will be similar to, but slightly greater than the biweekly pay amount.
How can I request the advance?
Employees can request the advance by completing a Transitional Salary Advance Request and Payroll Deduction Form and turning this form in to their institution’s HR Office at least 15 calendar days prior to the pay date on which the advance is requested.
How is the advance repaid?
The amount of the advance is repaid in equal payments, automatic payroll deductions, over the next six (6) biweekly pay periods. The full amount of the advance must be repaid in calendar year 2021. If for any reason there is still an outstanding balance as of the 12/30/21 pay date, the entire remaining balance will be collected at that time.
What happens if an employee leaves the UW System before repaying their advance?
If an employee leaves the institution before the advance is repaid, the institution is authorized to take the full amount from the last payroll check or collect from the employee.
Is this a loan?
No, this is a payroll advance based on your expected earnings in calendar year 2021. There is no interest charged to the employee and no separate promissory note apart from the Transitional Salary Advance Request and Payroll Deduction Form.
Are payroll taxes withheld from the advance?
Yes, IRS guidelines require that wage income be taxed at the time it is received. The W-4 on file at the time of the advance payment will be used to calculate the tax withholding amount. The withholding is subsequently adjusted on each paycheck that includes a repayment.
Are other benefit deductions withheld from the pay advance?
No. Other benefit deductions are withheld at their normal amounts from the regularly scheduled paychecks. The repayment of the pay advance will show up on those paychecks as an additional pre-tax deduction. The pay advance itself does not result in additional withholding at the time it is issued, with the exception of taxes.
Where can I find the process for implementing this program at my institution?
The process is incorporated into the Interim Policy Document 1200- Interim 09, Salary Advances for Employees Converting to Biweekly Pay. Additional guidance can be obtained from UW Shared Services by contacting Customer Support at email@example.com.