University of Wisconsin–Madison

Payroll Transition Employee Loan Program

Beginning in July 2021, all UW System employees who are paid monthly—including UW–Madison employees—will be moved to a biweekly pay schedule. The change is a UW System initiative to align all employees on a single payroll cycle. For those employees who are paid over 12 months, the transition to biweekly pay will take place in July and August.

Impact of the transition on paycheck amounts

As the transition timeline shows, employees who are paid over 12 months will not receive a full month’s pay on July 30, 2021. Instead, employees with 12-month appointments will only be paid for the first 17 days of July (July 1–17) on July 30. These employees will then receive pay for the remaining days of July (July 18–31) on Aug. 12. The Aug. 12 paycheck will be the first biweekly paycheck, and following that, biweekly paychecks will continue to be received every other Thursday.

Under the new biweekly payroll schedule, most deductions for benefits such as health, dental, vision and life insurance will be split evenly over the first two biweekly paychecks each month beginning in August. In months when there are three pay periods, benefits deductions will not be taken from that pay period with the exception of Wisconsin Retirement System, Tax Sheltered Annuity 403(b) and Wisconsin Deferred Compensation 457 contributions.

However, in July, the paycheck received on July 30 will have full benefits deductions for the month of July. This will further reduce the amount of the July 30 paycheck. The next paycheck, on Aug. 12, will have no benefits premiums deducted. Beginning with the following biweekly paycheck on Aug. 26, half of the benefits premiums will be deducted from each of the first two biweekly paychecks each month.

Interest-free loans available to qualifying employees

UW–Madison recognizes that this period of transition may present a financial hardship for some employees. Some employees may not have enough funds to reserve to cover their bills and expenses in early August. To relieve the financial burden of the change to biweekly pay on these employees, UW–Madison is offering short-term, interest-free loans to employees who are directly affected by this July/August transition.

Loan repayment can be made via payroll deduction and will take place over a 12-month period starting in October.

Who is Eligible?

The Payroll Transition Employee Loan Program is designed specifically for those employees who are paid over 12 months (i.e., have 12-month appointments). These employees will be most directly impacted by the transition to biweekly pay in the months of July and August, and they are most likely to experience short-term financial challenges.

To qualify for a Payroll Transition Employee Loan, an employee must:

  • Have a 12-month contract (be paid on an annual basis)
  • Have an appointment that is continuing until June 30, 2022

A qualifying employee may be any of the following:

  • Academic Staff
  • Faculty
  • Limited Appointees
  • Graduate Assistants
  • Employees-in-Training

Employees who are not eligible for a Payroll Transition Employee Loan include:

  • Employees who have nine-month appointments
  • Employees who are University Staff
  • Any employee who has already taken out a loan under the Payroll Transition Employee Loan Program

Questions?

If you have questions, please contact the Office of Human Resources:

608-265-2257
employeeloan@ohr.wisc.edu

Ready to apply?

Apply for a Payroll Transition Employee Loan

Be sure to use your @wisc.edu email address whenever you are communicating about this loan.

Frequently Asked Questions

Loan Eligibility and Terms

  • Who is eligible for a Payroll Transition Employee Loan?

    To qualify for the Payroll Transition Employee Loan Program, an employee must:

    • Have a 12-month contract (be paid on an annual basis)
    • Have an appointment that is continuing until June 30, 2022

    A qualifying employee may be any of the following: Academic Staff, Faculty, Limited Appointee, Graduate Assistant, or an Employee-in-Training.

  • Who is not eligible for a Payroll Transition Employee Loan?

    This program is designed to provide financial assistance to those UW–Madison employees who are directly impacted by the transition from a monthly payroll schedule to a biweekly payroll schedule in July and August, 2021. For this reason:

    • Employees who have nine-month appointments are not eligible
    • Employees who are University Staff are not eligible

    In addition, an employee who has already taken out a loan under the Payroll Transition Employee Loan Program is not eligible to take out a second loan.

  • How much money can I borrow under this loan program?

    You may request a loan amount in increments of $500, with a minimum of $500 and maximum of $2000.

  • Will I pay interest on this loan?

    No. This is a zero-interest loan.

  • What is the minimum loan amount?

    The minimum loan amount is $500.

How to Apply for a Payroll Transition Employee Loan

Receiving the Loan Funds

  • How will I receive the loan funds?

    The loan funds will be received as a direct deposit to the bank account UW–Madison has on file for the direct deposit of your paycheck. If you receive your pay via deposits to a UW–Madison Focus Card instead of direct deposit to a bank account, the loan funds will be deposited to your existing UW–Madison Focus Card.

  • How long does it take to receive the loan funds?

    After the loan is approved, employees will receive a truth-in-lending statement and promissory note that includes the approved loan amount. After the loan is approved, you will receive a truth-in-lending statement and promissory note via email. You will be instructed to use DocuSign to electronically sign and return the promissory note; please do this as soon as possible.

    Once the Office of Human Resources receives the signed promissory note, the approved loan amount will be direct deposited to your bank account (or to your Focus card if applicable) within 3-4 business days. No loan funds will be distributed to employees prior to July 30.

  • If I want to receive my loan funds on July 30, when should I apply?

    Please apply by July 15 if you wish to receive your loan funds on July 30.

Loan Repayment

  • How do I repay my loan?

    Loan repayment may be via payroll deduction, check, credit or debit card, or ACH (online transfer of funds).

  • How will the loan payments be deducted from my paychecks?

    Each employee loan has a one-year repayment schedule. Payroll deductions for repayment will be spread evenly over all the biweekly paychecks you receive in one year (26 paychecks total). Payroll deductions begin with the first paycheck in October 2021, paid on Oct. 7, 2021.

  • How much will be deducted for a loan payment from each paycheck?

    The amount that is deducted from each paycheck will be based upon the amount of your loan:

    • $500 loan = $19.23 loan payment deducted from each paycheck
    • $1,000 loan = $38.46 loan payment deducted from each paycheck
    • $1,500 loan = $57.69 loan payment deducted from each paycheck
    • $2,000 loan = $76.92 loan payment deducted from each paycheck

    If you choose to make additional or early payments, your paycheck deductions will remain the same while the loan is in effect, but you will pay off your loan early.

  • If I choose repayment via payroll deduction, what happens if I do not remain employed at UW–Madison through the end of the repayment schedule?

    If you leave UW–Madison employment before the loan is repaid, you can have the remaining balance owed deducted from your final paycheck, or you can continue to make regular payments when you receive your monthly statements.

  • Can I pay my loan off early?

    Yes. Payments can be made before the loan repayment timeframe, and extra payments can be made during the repayment timeframe to pay the loan off early. Additional or early payments can be made via check, credit or debit card, or ACH.

Where to Go for Help