A pay date shift will impact faculty, staff and student employees this summer.
Gov. Bill Owens signed Senate Bill 197 in March, which moves June’s last pay date for all state employees to the first working day of July.
By changing the fiscal year this way, Colorado is expected to save about $100 million in general fund dollars this year, said Paul Miller in University Relations, in a press release.
Employees paid monthly will be paid on July 1 instead of on June 30. Employees paid biweekly will be paid for the pay period ending June 13 on July 1 instead of June 27. Other salary or biweekly pay dates will remain the same.
“A potential problem (employees) could run into is just a shortage of money for a small amount of time,” said Rick Davis, payroll manager at Human Resource Services.
Some employees may face potential problems as a result of this pay date shift, since some people have end-of-the-month automatic debt payments charged directly to their bank accounts. If this is the case, employees should contact their banks/creditors to make different arrangements, Miller said.
“We’re going to put a paycheck stuffer in everyone’s paycheck’s in June to remind them,” Davis said.
The change in pay dates will not affect taxable income, Public Employee’s Retirement Association service credit or the state’s matching program for 401(k), 403(b) or 457 plans, according to a list of frequently asked questions about Senate Bill 197 available at www.colorado.gov/dpa/stateline/index.htm.
“We’re trying to make it the least painful as possible,” Davis said.