Committee votes to phase in one-day monthly payroll holdback starting in September to address processing timing

The committee approved a phased payroll timing change designed to reduce the county’s practice of paying employees before certain days of work have occurred. Under the agreed plan, the county will move the pay date by one day per month beginning with the county payroll cycle that falls at the end of September, creating a gradual holdback to improve cash-flow and allow staff extra processing time.

Finance staff explained that the county in some instances pays employees for a pay period that includes days the employee has not yet worked; moving the pay date will align payroll with work performed and reduce the administrative burden of processing corrections. A county staff member explained: "we are paying ahead. So we would like to move it so that we have a holdback that we're paying after the employees have worked and give accounting enough time to process the transactions they need with the bank." The staff member also clarified there is no net cost to the county: "It's no cost. We owe them the money. It's just a cash flow."

The committee adopted the change with a phased schedule tied to payroll cycles so the holdback reaches the intended level over several months. The committee also directed finance to meet with department heads and circulate a memo so supervisors can explain implications to employees and prepare for short-pay adjustments where necessary.

Members emphasized the change is procedural and does not reduce employee pay; it is a timing change to align payroll processing with the work performed and to reduce errors caused by advance payments. Staff indicated the change will be implemented after fiscal-year closing tasks and will be coordinated with department heads to minimize disruption.