Understanding how the June 29, 2025, pay plan affects your payslip

Posted on by sprobst.wisc.edu

As universities begin the semester, the June 29, 2025, pay plan increase of 3% is being added to eligible employees’ current appointment(s). If you are eligible, you will receive a notice in Workday that includes a letter of the change for your information. This letter is sent when the pay plan is applied to your salary, which is first noticeable for many employees on the September 4, 2025, payslip or the September 18, 2025, payslip.

The earnings section of the payslip will show more lines of information than normal due to the retroactive pay added per week. The pay plan effective date was June 29, and it was applied in August; you will see that your payslip shows the original earnings you received for each pay period from June 29–August 10. Workday calculates and shows these earnings with a subtraction of the original earnings and then an addition of the same number of earnings and hours, but utilizing the new rate of pay. For those eligible, you will also see original and updated earnings for any leave time, including legal holiday, used or worked over the July 4 holiday. The earnings section will also display your current period earnings calculated at the new rate.

With previous retroactive pay plans, you would have seen a separate lump sum amount on your payslip. With Workday, you will not see a separate lump sum, as the retroactive pay is calculated and then added to your regular earnings for that pay period. You can see the difference or increase by comparing the two earnings lines for each pay period. The retroactive pay plan is only calculated for those employees who were eligible and who had earnings in the pay periods occurring before August 10.

Minor changes in pay calculations in Workday

Posted on by sprobst.wisc.edu

Along with the implementation of Workday, some employees can expect some minor changes to the way pay is calculated. These are primarily based on differences in rounding. More than 99% of employees will experience no change, or the change will not be more than a few cents. For the small number of employees who will see a greater difference, the change is most often due to tax calculations, rounding, and regulatory compliance.

Examples of these changes include:

  • Garnishments: Some employees pay a $3 employer fee with each garnishment deduction. While Human Resource System (HRS) added the fee on top of the deduction, Workday will lower the deduction to accommodate the fee. For example, an employee in HRS with a $200 garnishment deduction would be charged $203. In Workday, this same employee will be charged $200, with $197 going to the garnishment vendor and $3 paying the employer fee.
  • Time submission: Rounding to the quarter hour differs on timesheets.​ Workday rounds at the seven-minute mark: It rounds back at seven minutes or fewer and forward at eight minutes or more.
  • Benefits:
    • Application of supplemental tax rates create variation due to fewer decimal places permitted in Workday.​
    • The premium for State Group Life now rounds similarly to other insurance premiums, resulting in a slight change for a limited number of employees.
    • The Wisconsin Retirement System (WRS) limits for Highly Compensated Employees are applied within the year instead of being refunded at the end of the year.​
  • Multiple Positions: Tax withholding for employees with multiple positions between universities may vary slightly.
  • Minnesota and Massachusetts tax withholding: This varies based on allowable tax rate applications.
  • Foreign National Taxation: Taxes for foreign nationals may vary depending on Workday’s pre-tax deduction settings and treaty calculations, which differ for Resident Aliens in their final pay period.​
    • Workers who are Nonresident Aliens should be prevented from having non-WI tax reporting/withholding in Workday using an Alternate Work Location.

Email UW-Shared Services with questions about these changes or your payslip.