Posted 3 a.m. Wednesday, Dec. 7, 2022
With the transition to a biweekly payroll cycle for FY 2022, employees received 25 paychecks instead of 26 resulting in a reduction in earnings reported to the Wisconsin Retirement System (WRS) for the fiscal year 2022.
***THE FOLLOWING INFORMATION APPLIES ONLY TO EMPLOYEES WHO HAD AN ACTIVE APPOINTMENT AND WERE PAID ON THE MONTHLY PAY DATE OF JUNE 30, 2021***
In July 2021, the UW System modified its payroll practices for employees paid monthly by transitioning them to the biweekly payroll cycle. Prior to July 2021, employees paid on a monthly basis were paid-to-date for all days worked within a month. Generally, employees paid monthly were paid on the following first of each month, except for June, when employees were always paid June 30 (prior to the end of the fiscal year).
Employees paid biweekly now receive a paycheck approximately two weeks after the end of the payroll period which typically results in 26 paychecks during any given fiscal year. With the transition to a biweekly payroll cycle, for FY 2022, employees received 25 paychecks instead of 26 because employees were paid for all days worked in June 2021 on their June 30, 2021, paycheck. This resulted in a reduction in earnings reported to the Wisconsin Retirement System (WRS) for the fiscal year 2022 as earnings are reported to the WRS on the date paid.
As a result, employees who separate service during the next two fiscal years (2023, 2024) and who are including FY 2022 as one of their highest years of earnings may be affected if they are eligible for the WRS formula benefit calculation.
The WRS-Single Payroll Transition Program allows eligible employees to apply to make a one-time election to accelerate payment of wages for days worked at the end of their last full fiscal year of employment. This means wages will be paid in June for all days worked in June. This will result in higher reported earnings for the last full fiscal year worked.
Submit a completed WRS-Single Payroll Transition Program Application by May 1 of the year in which the payment will be accelerated.
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