FAQs
Semi-monthly pay means employees will be paid twice a month, typically on the 15th and the last day of the month. Business days are defined as days other than weekends and federal banking holidays. For example, if the 15th or the last day of the month does not occur on a business day, employees will receive their pay on the previous business day. An employee’s total annual compensation will not change from the shift to a semi-monthly payroll cycle.
This change will impact all exempt staff, Year-Round (YR) faculty, Academic-Year (AY) faculty, and graduate students. Hourly employees will continue to be paid bi-weekly.
Exempt employees are salaried workers who are not paid overtime for working more than 40 hours a week.
The final monthly paycheck will be issued on December 31, 2026, which reflects the December 1–31, 2026, pay period. Beginning in January 2027, all exempt staff, faculty, and graduate students will receive 2 paychecks a month. The first semi-monthly paycheck will be received on January 15, 2027, which reflects the January 1–15, 2027, pay period.
For more information on AY Faculty Contracts, visit the Faculty Contract Transition website.
Transitioning from a monthly to semi-monthly payroll cycle is being made for the following reasons:
Align with Baylor’s broader strategic goals of fostering an efficient, competitive, and world-class academic environment.
Align with the upcoming change in the Academic-Year (AY) faculty contract terms, which enhances Baylor’s ability to recruit research-intensive faculty, as well as provide faculty three summer months for research, grant, consulting, or administrative responsibilities.
- Enhance the employee experience through improved cash flow and financial planning, opportunities for increased earnings in retirement contributions, and faster leave accrual.
Increase operational efficiency by reducing remedial actions such as off-cycle payments, streamlining the onboarding/offboarding processes, and improving budget and financial planning.
The university anticipates that, after an initial adjustment period, employees will find the semi-monthly payroll schedule offers added convenience and improved overall financial flexibility while aligning with industry standards.
The total leave earned, monthly benefit costs, and tax withholdings will remain unchanged; instead, they will be split between the two pay periods. Accruals for vacation and sick leave will be credited in equal parts each pay period. Similarly, tax withholdings and all benefit deductions, such as health insurance, retirement contributions, and other programs, will be split equally between the two paychecks each month. More information will be provided in the coming months if any action is needed from you.
Your current tax withholding selections will remain in place, and taxes will continue to be calculated appropriately based on the new pay frequency. While taxes will be withheld in smaller amounts per paycheck, the total tax withheld for a month will remain the same.
If you have specified an additional withholding amount on your W-4, action will be needed to update it to ensure the correct monthly amount is processed once semi-monthly payments begin. Additional instructions will be provided when action is required.
There is no change to the total monthly amount withheld for garnishments. Court-ordered obligations will continue to be met on time without increasing the financial impact on any single payment. Please email Payroll_Office@baylor.edu with specific questions.
While no immediate action is required, the following recommendations are provided to help employees begin thinking about and planning for the upcoming payroll change. These are proactive steps to consider as you prepare for the transition.
Visit the project website regularly, as resources will be added to assist employees with preparing for this change.
Review your personal budget and direct deposit payments to align with bill payments, savings contributions, and other financial obligations.
- Review your direct deposit setup and/or tax withholdings. If deposits are going to multiple accounts or if extra withholdings are added to your W-4 form, action will be needed to update it to ensure the correct monthly amount is processed once semi-monthly payments begin. Additional instructions will be provided when action is required. Please email Payroll_Office@baylor.edu with specific questions.
Review the new payroll calendar and compare the calendar to your current payment schedule to identify potential cash flow gaps.
Adjust your budget by breaking monthly expenses into two parts to match the new payroll calendar. Use a budget tool or spreadsheet to compare your income against expenses. Visit the Resources tab on the Semi-Monthly Payroll Website for a list of trusted, no-cost budgeting tools that can help organize your finances and prepare for the upcoming semi-monthly payroll transition.
Adjust manual and/or automatic payments to prevent cash flow gaps by contacting service providers and requesting the due date be changed to align with the new payroll calendar.
If possible, set aside a small reserve in the months leading up to the transition to help cover smaller unexpected expenses during the adjustment period.
- Additional email communication will be provided in the coming months if any additional action is required of you.