Approve Change to the Payroll Processing Schedule, Effective July 1, 2006 (Business Division)

Currently, our school district processes a separate payroll cycle each week. Including all employees on one payroll cycle will reduce errors of omission and make the payroll reporting at all sites more uniform. Attachment 1 identifies reasons to change to the bi-weekly process. Attachment 2 contains responses from site secretaries who were polled concerning the change.

BEST BUSINESS PRACTICE

We will see a small cost savings due to the reduction of accounts payable checks written or wire transfers completed for third parties (tax shelters, unions, credit unions, health insurance, etc.).

The Business Process Improvement Team will evaluate this process after December 31, 2006, to look for any positive or negative payroll processing effects.