Monthly to Biweekly Payroll Transition

If you are impacted by this change, your annual salary will not change but will be divided by 26 biweekly pay periods, rather than 12 monthly pay periods. While you will be paid less each pay period, you will also be paid more frequently.

The following will not be impacted because of the transition from monthly to biweekly: 

• Your position’s FLSA (Fair Labor Standards Act) exemption status (exempt or nonexempt). IMPORTANT: Employees whose positions are designated as exempt will not be required to clock in, regardless of how often they are paid.  

• Your annual salary will not change but will be distributed over more pay periods. (26 vs. 12)

• Your annual leave accruals (They will be adjusted over 26 pay periods to ensure the same annual accruals.)  

• Your elected benefits. (Premiums will be calculated over 26 pay periods rather than 12 pay periods.) 

Auburn University is updating and enhancing our business processes. By making this change: 

• Employees will be paid based on one of two pay frequencies instead of three. This change aims to make the process easier for employees who might switch roles during the year. 

• It will become simpler to determine the timing for moving an employee from one position to another since most employees will receive their pay on a biweekly basis. 

• Aligning pay periods and frequencies will simplify many business processes for employees across campus. 

• The change will occur on June 1, 2025.

• To calculate your gross biweekly paycheck amount, take your annual salary and divide it by 26.  

• There are 26 biweekly pay periods during the calendar year.  

• There are two months that you will receive a third biweekly paycheck.  

• You may want to utilize a salary calculator (example) to see what your paycheck may look like. 

Payroll calendars are listed on the UHR (University HR) website. (Calendars for 2025 will be added by the end of October.) Biweekly pay dates occur every other Friday. 

We encourage employees to think about how the new pay schedule may affect their finances. This includes reviewing payroll deductions and personal monthly expenses. For example, some organizations, like mortgage lenders, may automatically withdraw payments from personal bank accounts on a predetermined date. 

IMPORTANT: If you have a monthly payroll deduction with the Auburn University Credit Union, it could affect your payroll deductions in place. Please review and/or make any necessary changes to your deductions to ensure that they are accurate. Otherwise, more money may be taken out over time since deductions will occur every two weeks rather than monthly. You can call AUCU at 844-4120 for more information. 

Much of the information below is taken from the ElevatED course HR514E, “FLSA Basics: Best Practices for a Smooth Transition.” 

Deductions, Tax Withholdings, and Benefits 

• The transition from monthly to biweekly may affect payroll deductions that are currently in place such as Tiger Giving, United Way, and garnishments. Additional information on adjusting these deductions will be forthcoming. 

• If you are currently requesting additional withholdings from tax forms such as the W-4 or A-4, you may want to revise these forms so the amount withheld remains appropriate. (For example, if Bob’s current monthly deduction is $50, he may want to revise his biweekly deduction to $23.) As a reminder, requested withholding amounts are deducted for each paycheck. 

• Biweekly benefit premium rates (health insurance, vision and dental insurance, etc.) can be found online, including the Benefits at a Glance document. 

Please email our dedicated Monthly to Biweekly transition email account, mn2bw@auburn.edu, with any questions.   

Voluntary Retirement Plan Contributions 

As a result of this change, you will receive 11 monthly paychecks this year instead of the usual 12. This adjustment may impact your year-end goals for payroll deductions, such as contributions to your 403(b), 457(b), RSA-1, and Health Savings Account. 

If you have set specific year-end goals for any of these types of payroll deductions, you may want to review and adjust your contributions accordingly to meet your targeted amount. For example, if you aim to contribute $1,200 to your 403(b) plan by the end of the year, you may need to make the necessary adjustments in your monthly paychecks before the last monthly paycheck in November. 

Other Suggestions 

• Monthly Expenses: Listing monthly expenses can be a good first step in determining how to allocate biweekly pay to cover costs. Since some bills are monthly (e.g., rent/mortgage, utilities, loans), a portion of each biweekly paycheck can be allocated to cover these expenses. 

• Variable Expenses: Monitoring and adjusting variable expenses (groceries, entertainment, etc.) can help in maintaining a personal budget. 

• Debt Management: Making loan or credit card payments more frequently (with each paycheck) can ensure that monthly loan or credit card payment obligations are met and may even reduce interest costs. 

• Automatic Payments: Employees may wish to update automatic payments so they coincide with the new biweekly pay schedule. This may include adjusting due dates, if allowed by the vendor.  

• Subscriptions: Some employees may wish to reassess subscriptions and memberships to determine if they are necessary and if they fit within the new pay schedule. 

• Short-term and Long-term Financial Goals: Employees may wish to align their short-term and long-term financial goals. This could include consulting with a financial advisor to help navigate the transition and maintain progress towards financial goals. 

Email mn2bw@auburn.edu If you have any questions.