While many on campus are eagerly looking forward to the changes in their pay that the new year is bringing, several factors have combined to make effecting these changes a challenge for the staff of Berkeley's Payroll Office and Administrative Systems Department.
Due to last minute budget information, compensation for many employees was increased through salary scale or range adjustments retroactive to Oct. 1, 1994, and payments now need to be generated.
Additionally, along with all other UC campuses, Berkeley is currently installing a complex and revised online payroll system scheduled to be activated on this campus in early March.
The Payroll Office is also readying W-2 and 1099 statements for distribution in late January and working to implement the January merit increases (effective with Jan. 1, 1995, earnings).
All these factors have come together to produce a heavy workload for payroll and data processing offices across the nine-campus UC system.
At Berkeley, the Payroll Office will be following the salary and range adjustment schedule shown in the accompanying table.
James Hensler, director of Business Services, noted that the dates pay changes take effect were determined to a large extent by the dates "we received the information we needed, knew that the UC system had the money to enact the increases and got the revised computer programs from the Office of the President in place."
Two other payroll items to remember:
o Social Security (Old Age Survivors Disability Insurance and Medicare) rates and wage caps for 1995 are as follows: Effective Jan. 1, the cap on Old Age Survivors Disability Insurance-covered wages will be raised to $61,200 from the 1994 rate of $60,600. For 1995, the Old Age Survivors Disability Insurance rates will remain at 6.2 percent for both the employer contribution and the employee contribution.
As in 1994, there will be no limit in 1995 on the amount of earnings subject to the Medicare portion of the Social Security tax. The rate, both for the employee and the employer, will remain at 1.45 percent.
o Departments should receive W-2 statements for all employees in an active pay status by Jan. 30. Forms that cannot immediately be delivered to employees will be mailed to home addresses.
Employees with questions about pending merit and range adjustments should contact their departmental business office.