Benefit Deduction Changes Coming For Bi-Weekly Employees

Benefit Holiday Deduction

UCPath Brings Changes to Benefit and Voluntary Deductions in Paychecks

2019 is bringing some changes to bi-weekly paid employees. One is the timing of the deduction holiday.  Voluntary deductions like employee costs for health insurance and parking are taken out of bi-weekly employees’ paychecks 24 out of 26 paydays each year.  That means every year there are 2 bi-weekly paydays in which employees will not have voluntary, flat dollar deductions withheld. (Percentage based deductions are withheld from all 26 paychecks). In 2017 and 2018 one of those deduction holidays occurred in January.

Currently, the deduction holiday occurs when three bi-weekly pay periods fall within the same month.  In UCPath, the deduction holiday occurs when three bi-weekly paycheck dates are in the same month.  Consistent with UC’s existing practice, there will be two deduction holidays in UCPath for 2019; they will occur on the May 29, 2019 and October 30, 2019 paychecks.

“It’s important for employees to understand that this change only impacts when to expect the deduction holiday and does not change the amount of pay employees receive for the year”,  Cindy Jones, Director of Payroll Services for Accounting & Finance said.

Again, UCPath will use “paycheck date” instead of “pay period end date”.  This method will not change the amount of pay anyone receives throughout the year. There will also be no changes to pay dates for bi-weekly and monthly employees. Click here for more information on those pay dates.

 

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