City's pending pay period change, explained

City's pending pay period change, explained

Zach White

When employees of the city came to Tuesday night's Havre City Council meeting, a number of questions, many unanswered, about an upcoming pay period shift sabotaged the meeting's usual brevity. However, Deputy Clerk Annette Swinney, who handles the city's payroll, has those answers.

The change

As it is now, the city's pay periods end on the 15th and last day of every month.

Checks are distributed the next day, on the 16th and 1st.

When these checks come out on a weekend, they are distributed the previous workday, including this last pay period.

One week ago today, city employees were paid for what it was estimated they would work that day they got the check and the next day.

Any discrepancies between the check given and time actually worked should be noted and changed for the next check. Swinney said this doesn't always happen. People forget.

So the city will now end their pay periods four days earlier than checks go out, to give Swinney time to get them ready. The checks will then be for time actually worked and not just a guess at the end.

"I don't think any place in the world does things like we do them now, " Swinney said.

The change will also allow the city to make actual direct deposits into people's accounts.

As is, the city writes one check to a bank for the wages of all of the employees that have direct deposit into that bank's account. Then the bank breaks it up and fills out individual deposit slips for everyone's wages.

The problem

Once this change has been in effect for a while, everything will essentially function as before. But some city employees anticipate the changeover to be rough.

By moving the pay period back by four days, employees' first checks will be shorter four days of pay from either their previous or following checks.

When the council originally proposed this idea, it was supposed to take effect on Jan. 1.

Several employees came to the council and asked if this could be moved, since having one smaller check right after the holidays would be a problem for most.

The council agreed and moved the change to March 1.

At this past meeting, the employees again came to express concerns about the change.

They asked if there was any other way to handle a shortened check, with a loan or by breaking up the four days over a longer period of time, as long as everything was square by the end of the city's fiscal year in July.

City Clerk Lowell Swanson and Councilman Gerry Veis, who is also vice president of Bear Paw Credit Union, discussed potential plans but admitted they didn't know enough about the payroll system, and the council decided to look at possibilities, and come up with a solution.

The solution

Annette Swinney knows enough about the payroll system, and when asked about the possibility of breaking the four days up across a series of paychecks, she shook her head.

"It would be a nightmare, " Swinney said.

What Swinney said the city could do is give employees a series of advances that would, in effect, do the same thing as breaking it up over periods.

An employee receiving a paycheck that is four days short could get an advance of three days' wages, so the check is one day short.

Then, when that advance comes out of the next check, the employee could get a two-day advance, making them, again, one day short.

Repeat one more time, with a one-day advance, and when that advance automatically comes out of the fourth check, everything is wholly paid.

And Swinney said that the city can absolutely work with employees on plans like this.

"If you need something like that, we are more than happy to do that. "

When employees of the city came to Tuesday night's Havre City Council meeting, a number of questions, many unanswered, about an upcoming pay period shift sabotaged the meeting's usual brevity. However, Deputy Clerk Annette Swinney, who handles the city's payroll, has those answers.

The change

As it is now, the city's pay periods end on the 15th and last day of every month.

Checks are distributed the next day, on the 16th and 1st.

When these checks come out on a weekend, they are distributed the previous workday, including this last pay period.

One week ago today, city employees were paid for what it was estimated they would work that day they got the check and the next day.

Any discrepancies between the check given and time actually worked should be noted and changed for the next check. Swinney said this doesn't always happen. People forget.

So the city will now end their pay periods four days earlier than checks go out, to give Swinney time to get them ready. The checks will then be for time actually worked and not just a guess at the end.

"I don't think any place in the world does things like we do them now, " Swinney said.

The change will also allow the city to make actual direct deposits into people's accounts.

As is, the city writes one check to a bank for the wages of all of the employees that have direct deposit into that bank's account. Then the bank breaks it up and fills out individual deposit slips for everyone's wages.

The problem

Once this change has been in effect for a while, everything will essentially function as before. But some city employees anticipate the changeover to be rough.

By moving the pay period back by four days, employees' first checks will be shorter four days of pay from either their previous or following checks.

When the council originally proposed this idea, it was supposed to take effect on Jan. 1.

Several employees came to the council and asked if this could be moved, since having one smaller check right after the holidays would be a problem for most.

The council agreed and moved the change to March 1.

At this past meeting, the employees again came to express concerns about the change.

They asked if there was any other way to handle a shortened check, with a loan or by breaking up the four days over a longer period of time, as long as everything was square by the end of the city's fiscal year in July.

City Clerk Lowell Swanson and Councilman Gerry Veis, who is also vice president of Bear Paw Credit Union, discussed potential plans but admitted they didn't know enough about the payroll system, and the council decided to look at possibilities, and come up with a solution.

The solution

Annette Swinney knows enough about the payroll system, and when asked about the possibility of breaking the four days up across a series of paychecks, she shook her head.

"It would be a nightmare, " Swinney said.

What Swinney said the city could do is give employees a series of advances that would, in effect, do the same thing as breaking it up over periods.

An employee receiving a paycheck that is four days short could get an advance of three days' wages, so the check is one day short.

Then, when that advance comes out of the next check, the employee could get a two-day advance, making them, again, one day short.

Repeat one more time, with a one-day advance, and when that advance automatically comes out of the fourth check, everything is wholly paid.

And Swinney said that the city can absolutely work with employees on plans like this.

"If you need something like that, we are more than happy to do that. "