Payroll Transition FAQ

The change will reduce payroll errors, and make pay clear, accurate and predictable. These changes will also help the state remain compliant with state and federal laws. 

Biweekly pay means you are paid every two weeks on a regularly scheduled payday, typically with 26 paydays per year. The payroll transition calendar​ shows all paydays for 2027. The biweekly pay cycle calendar shows how a biweekly pay cycle will work for payroll processing, including time entry deadlines.

Last Updated: 9/14/2026​

​You will be paid every other Friday unless the payday falls on a Federal or banking holiday. In the event of a Federal or banking holiday on payday, employees will be paid on the last working day prior to the holiday. 

Yes. Payday will be every other Friday starting July 16, 2027. 

No. Biweekly pay happens every 14 days, paydays move slightly throughout the calendar year. The payroll transition calendar​ shows all paydays for 2027. ​

​No. A biweekly schedule is fixed to a 14-day cycle. Because a calendar year is slightly longer than 26 biweekly cycles, there is one extra day at the end of the year and two extra days in a leap year.  

The last monthly payday is July 1, 2027 for time worked in June. ​

Yes. You will receive your final monthly pay for June on July 1, 2027 before moving to the new biweekly pay cycle. The first biweekly pay date is July 16, 2027 and is for work performed July 1 – 3, 2027. 

Yes. All state agencies in the Executive Branch, Legislative Branch, and Judicial Branch using Workday Payroll will transition to biweekly pay by July 1, 2027. ​

​Biweekly pay aligns with weekly work patterns and provides a predictable, repeatable schedule for employees, payroll offices, supervisors and agencies with a consistent 80 hours per pay period. 

Last Updated: 10/7/2026​

The Workday Oregon team is applying lessons learned from prior Workday system updates and has a thorough test plan for the system to maximize accuracy and minimize risk. 

We want to make sure the project is focused on quality, so we have also hired an outside independent quality management team. That team is reviewing all of our major project work and the work our vendors are doing and providing feedback, which we are incorporating into our efforts. You can read their regular reports on the Payroll Transition Resources webpage​ under Independent Quality Management Services (IQMS) Project Status Reports.

Yes. The project includes a testing period of ten months to ensure the system is functioning as intended, meets business requirements and is ready for use. Testing includes unit testing, end-to-end testing, agency testing, payroll compare testing, and pre-production testing.

​An allowance is a compensation action adding extra pay to your base salary for special assignments, skills, qualifications, and credentials for enhanced duties. Allowances are removed when your special assignment ends, or skill, qualifications, and credentials for enhanced duties are no longer required.

There are three types of allowances: 

Allowances will be assigned to workers’ compensation based on a biweekly frequency to match the pay period, including fixed dollar, variable dollar, and percentage-based allowances. Allowances are wages or earnings and go toward the Fair Labor Standards Act (FLSA) rate of pay for overtime calculation purposes. In payroll, an hourly allowance rate would be applied to the total biweekly timesheet hours for hourly employees and to the total biweekly average hours for salary employees. Both hourly employees and salary employees would be paid their allowance with each biweekly payday. 

A differential is extra pay added to an employee’s base compensation for special conditions or responsibilities, such as night shifts, weekends, or on call work. Depending on the specific differential, the pay is added by entering a specific time code or it will calculate based off of your hours of work. A differential is a time-tracking action, not a compensation allowance.​

DAS publishes a full list of all differentials​. 

​How differentials are paid will not change in biweekly pay.  

No. Your annual compensation will remain the same.  

To convert your monthly salary pay to biweekly pay, multiply your monthly pay by 12 months to equal your annual pay. Divide your annual pay by 26 to arrive at your biweekly pay.  ​

​To convert your monthly salary pay to an hourly rate of pay, multiply your monthly pay by 12 months to equal your annual pay. Divide your annual pay by 2080 hours to arrive at your hourly rate of pay. 

Yes. An annual, published payroll calendar will identify which months contain three paydays each year. The payroll transition calendar​ shows all paydays for 2027.

Since you will be paid every two weeks instead of once a month, you may need to adjust how you manage recurring bills and savings. You have access to free, unlimited, and confidential financial counseling resources through your Everyday Assistance Program (EAP)​. These services can help you review your budget, adjust payment due dates and create a plan for managing your money under the new pay schedule

You should review your payment schedules with your financial institutions to ensure adequate funds on paydays. You have access to free, unlimited, and confidential financial counseling resources through your  Everyday Assistance Program (EAP)​. These services can help you review your budget, adjust payment due dates and create a plan for managing your money under the new pay schedule. 

​​Employees eligible for overtime under federal law, Fair Labor Standards Act (FLSA) Non-Exempt employees, who receive a monthly salary will transition to hourly pay.

You can find your FLSA exemption status in your Workday profile. This Workday help article explains how: Find Overtime Eligibility Status and Why It Matters​. 

If you are classified as non-exempt under the Fair Labor Standards Act (FLSA), you are entitled to overtime pay. The FLSA classifies workers as exempt or non-exempt for the purposes of minimum wage, overtime eligibility and determining whether pay is hourly or salaried. 

• Exempt workers are not covered by FLSA overtime rules. 
• Non-exempt workers must be paid at least minimum wage and are eligible for overtime pay. ​

Last Updated: 9/14/2026

If you are FLSA Exempt and eligible for overtime under your collective bargaining agreement you will remain salaried and will also receive overtime.​

​Overtime continues to follow applicable employment rules and collective bargaining agreements​. For most employees, overtime is calculated on a weekly basis and paid biweekly.

If you are in a union represented position, refer to your collective bargaining agreement. If you are not in union represented position refer to the statewide human resources policy.

​

See “1.3 Allowances and Differentials”. 

Overtime and differential pay will be calculated within each biweekly pay cycle and included in your next payday. ​

No. Holiday pay will be paid according to State HR Policy 60.010.01 Holiday Leave with Pay or your collective bargaining agreement​. 

Ten business days. For example, the first full biweekly pay period in 2027 will run from Sunday, July 4 to Saturday, July 17, and the actual hours worked during this period are paid out on Friday, July 30.

If you use fixed deposit amounts (for example, $500 to one account), you need to review these deductions and adjust amounts for biweekly pay. Because the forms used to request the separate deposit amount uses the phrase “per pay period,” the fixed deposit amounts already set will apply to each biweekly pay period, unless you change it. 

​​Yes. Workday will continue to support multiple account allocations.

Last Updated: 9/14/2026​​​

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​​A deduction is an amount subtracted from your pay before you receive it. Deductions fall into three broad categories based on why the deduction is required:

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

Deductions that are a percentage of wages will continue to be deducted with each pay period where applicable wages are present. The deduction is based on the percentage of pay in the biweekly pay cycle.​

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​Except for charitable contributions, police and fire units retirement benefits, Oregon Savings Growth Plan (OSGP) and the Oregon Department of Education’s 403b retirement plan options, flat dollar amounts will be deducted from the first two paydays each month (24 deductions annually). In months with three paydays, no flat dollar deductions will occur during the third payday. Deduction amounts are annualized (monthly amount x 12 / 24).

​See “2.2.2 How will charitable donations be deducted in biweekly pay?” and “2.4.1 How will Public Employees Retirement System (PERS) deductions work?” for police and fire units and “2.4.2 How will Oregon Savings Growth Plan (OSGP) contributions work?” and “2.4.3 How will elective deferrals to the Oregon Department of Education (ODE)’s 403b retirement plan work?”.​

Last Updated: 10/7/2026

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

You have access to free, unlimited, and confidential financial counseling resources through your Everyday Assistance Program (EAP). These services can help you review your budget, adjust payment due dates and create a plan for managing your money under the new pay schedule. ​

Last Updated: 10/7/2026​

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​Charitable donations are a category of post-tax deductions, including deductions used for the Charitable Fund Drive and the Governor’s Food Drive.

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​Charitable donations are flat dollar amounts. However, the flat dollar amount will be deducted from all biweekly pay periods in a year according to the elections made by the employee.

Deduction amounts are annualized (monthly amount x 12 / 26).

For example, a monthly deduction amount of $100:

• ​$100 x 12 months per year = $1,200 annually
• $1,200 / 26 pay periods = $46.15 deduction amount per pay period

You may want to review your charitable donations, if needed. For example, you can change your Charitable Fund Drive amounts for 2027 in Fall 2026.​

Last Updated: 10/7/2026

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

Health, dental, and vision insurance premiums are flat dollar amount deductions. See “2.1.3 How will flat dollar amounts be deducted in biweekly pay?”.

Last Updated: 10/7/2026​

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

For full-time employees, short or long-term disability benefits are flat dollar amount deductions. See “2.1.3 How will flat dollar amounts be deducted in biweekly pay?”. 

For part-time employees, short- or long-term disability benefits are based on a percentage of pay. See “2.1.2 How will deductions that are a percentage of pay be deducted in biweekly pay?”.

Last Updated: 10/13/2026​

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

If it is a flat dollar amount, see “2.1.3 How will flat dollar amounts be deducted in biweekly pay?”. 

If it is a percentage of your pay, see “2.1.2 How will deductions that are a percentage of pay be deducted in biweekly pay?”.

You may want to review your deduction elections during open enrollment in October 2026.

Last Updated: 10/7/2026​

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​Almost all PERS deductions are based on a percentage of pay. See “2.1.2 How will deductions that are a percentage of pay be deducted in biweekly pay?”.

PERS deductions for police and fire (P&F) units are based on a flat dollar amount. However, the flat dollar amount will be deducted from all biweekly pay periods in a year. 

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​Elective deferrals to the OSGP can be flat dollar amounts or percentage based, and elections are on a per-pay-period basis. Both flat dollar amounts and percentage based OSGP contributions will be deducted from all biweekly pay periods in a year. 

You may want to review your OSGP contributions, particularly flat dollar amounts, if needed. We will identify and communicate a window of time later in the project to make adjustments prior to transitioning to biweekly pay. 

Last Updated: 10/7/2026

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

Elective deferrals must be flat dollar amounts, and the amount will be deducted from all biweekly pay periods in a year. 

You may want to review your 403(b) elective deferrals, if needed.

Last Updated: 10/7/2026

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​Federal and state income taxes are deducted based on your W-4 elections and your taxable wages. Social Security and Medicare taxes are mandatory deductions required by state or federal law. Tax deductions are generally based on a percentage of pay. See “2.1.2 How will deductions that are a percentage of pay be deducted in biweekly pay?”.

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​The value of certain non‑cash employee benefits must be included in taxable wages under federal law. This is commonly called “imputed income.” 

For example, a non-cash employee benefit that results in imputed income is health care coverage for a domestic partner. The increase in premium the state pays on your behalf to cover your domestic partner is deemed to be income to you. This “imputed income” is included in your taxable wages each pay period and at the end of the calendar year, in Form W‑2, Box 1 (“Wages, tips, other compensation”).

Last Updated: 10/7/2026​

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

Imputed income related to the Public Employees Benefit Board (PEBB) medical, dental, or vision coverage for a non-tax dependent (Domestic Partner) will be included with the first two paydays each month (24 payments annually). No additional amount would occur in months with a third payday. ​

When an employer pays the employee share of the Paid Leave Oregon contribution, it is considered imputed income and will be included with all biweekly pay periods. 

Last Updated: 10/7/2026​

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​Deduction of dues varies by union. If you are a represented employee, please reach out to your union representative if you have any questions about your union dues.

Last Updated: 10/7/2026​

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​Deductions will continue to be removed from each pay period where wages subject to withholding orders or garnishments are present. 

Agency payroll partners will review and update wage withholding orders or garnishments as needed. The withholding orders or garnishments already provide the amount to withhold for different pay frequencies, including weekly, biweekly, and monthly. As the employer, the state will modify the withholding to match the amount in the legal document based on the new pay frequency. 

These items will follow the direction on the garnishment or withholding order and state law.  

Last Updated: 10/7/2026​

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​Pretax and post-tax parking deductions are all based on a flat dollar amount. See “2.1.3 How will flat dollar amounts be deducted in biweekly pay?”. ​​

Last Updated: 10/7/2026

The information below outlines the anticipated future state approach for benefits, deductions and withholdings. All details are subject to system testing and final agreement with the state of Oregon’s labor partners.​

​Transit pass deductions are based on a flat dollar amount. See “2.1.3 How will flat dollar amounts be deducted in biweekly pay?”. 

Last Updated: 10/7/2026​

​We will provide details about leave accrual rates as soon as more information is available. Some aspects of this topic are still being bargained. Please check back later this fall for updates. If you are a represented employee, refer to your union representative if you have questions about the bargaining process.

Last Updated: 9/14/2026​

Information associated with the Workday Time and Time Off Apps does not apply to the Oregon Department of Transportation, Oregon Department of Aviation, and parts of the Oregon State Hospital and the Department of Corrections that do not use Workday Time Tracking.

Yes. Agencies that currently use Workday for time tracking will continue to do so. Employees must submit time, and managers must approve time by the deadlines assigned to each biweekly pay period or employees pay may be delayed.  

​​Time must be entered, submitted and approved by the deadlines for each biweekly pay period.

Refer to your organization’s policies and procedures.  ​

Information associated with the Workday Time and Time Off Apps does not apply to the Oregon Department of Transportation, Oregon Department of Aviation, and parts of the Oregon State Hospital and the Department of Corrections that do not use Workday Time Tracking.​

​Workday will continue scheduled time entry lockouts to process payroll. Employees should enter time promptly once the system is available. Managers can enter and submit time on behalf of an employee during the time entry locked period.

The biweekly pay cycle calendar​ shows how a biweekly pay cycle will work for payroll processing.

Last Updated: 9/14/2026

​Refer to your organization’s policies and procedures.

The Oregon Accounting Manual (OAM 45.07.00)​ recommends weekly time entry and approval. This ensures accuracy, prevents missed hours and minimizes corrections.

Information associated with the Workday Time and Time Off Apps does not apply to the Oregon Department of Transportation, Oregon Department of Aviation, and parts of the Oregon State Hospital and the Department of Corrections that do not use Workday Time Tracking.​

To learn more about your resources as an employee around time entry visit the Employee Time Entry Overview help article​ in Workday.

Last Updated: 9/14/2026​

​Refer to your organization’s policies and procedures.

The Oregon Accounting Manual (OAM 45.07.00)​ recommends weekly time entry and approval. This ensures accuracy, prevents missed hours and minimizes corrections.

The biweekly pay cycle calendar shows examples of how a biweekly pay cycle will work for payroll processing, including biweekly time entry and approval deadlines. 

Information associated with the Workday Time and Time Off Apps does not apply to the Oregon Department of Transportation, Oregon Department of Aviation, and parts of the Oregon State Hospital and the Department of Corrections that do not use Workday Time Tracking.​

The Workday Oregon Program publishes a payroll processing calendar each year with key dates for the year.

To learn more about your resources as a manager around time approval visit the My Team's Time and Time Off Overview help article​ in Workday.

Last Updated: 9/14/2026

​​You will still be paid. It is the employer’s responsibility to track hours worked and to pay all employees on regular paydays. Employees are responsible for entering and submitting time, managers are responsible for approving time. Managers are also responsible to submit and approve time on behalf of employees timely to ensure employees are paid timely.

Refer to your organization's policies and procedures.

For hourly employees, your pay may be delayed if not submitted and approved by your payroll deadlines.

Last Updated: 9/14/2026

​​​Eligible employees will get a one-time $1700 transition payment. We will provide details about the one-time $1700 transition payment as soon as more information is available. Some aspects of this topic are still being bargained. Please check back later this fall for updates. If you are a represented employee, refer to your union representative if you have questions about the bargaining process. 

​​Eligible employees will get an additional 40 hours of paid leave that can be either cashed-out or taken as leave. We will provide details about the additional leave as soon as more information is available. Some aspects of this topic are still being bargained. Please check back later this fall for updates. If you are a represented employee, refer to your union representative if you have questions about the bargaining process. 

Last Updated: 9/14/2026

​​​Yes. DAS in collaboration with RISE Partnerships and your Everyday Assistance Program (EAP)​, will provide pay calendars, pay calculators, planning guides, webinars and access to budgeting resources to assist employees.

​​​Yes. You have access to free, unlimited, and confidential financial counseling resources through your Everyday Assistance Program (EAP)​. These services can help you review your budget, adjust payment due dates and create a plan for managing your money under the new pay schedule.

Last Updated: 10/7/2026

​​Employees may consider adjusting autopay dates or planning ahead for the shift to biweekly cash flow, as well as reviewing pay elections and deductions. You have access to free, unlimited, and confidential financial counseling resources through your Everyday Assistance Program (EAP)​. These services can help you review your budget, adjust payment due dates and create a plan for managing your money under the new pay schedule.​

​​​Managers will receive training, communication tools, and timelines to assist employees with time entry and payroll questions. 

​​DAS will maintain a rapid payroll error response contact center for employees during the transition period starting one month prior to the July 1, 2027 transition date and continuing three months after the transition date.

DAS will share more detailed information in 2027.

Last Updated: 10/7/2026​

​​Yes. All employees will transition to a Sunday to Saturday standardized work week or FLSA period. 

A work schedule is a part of the worker profile in Workday and establishes regular working hours during a determined work week.   

Workday Oregon will continue to support rotating or overnight schedules.

Workday Oregon will continue to support flexible or alternative schedules.