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Managing America: US House

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Week Ending June 26, 2009

H.R.1752 To provide that the usual day for paying salaries in or under the House of Representatives may be established by regulations of the Committee on House Administration.

House salaries are paid on the last day of each month unless the last day falls on a weekend or public holiday when the House pays those salaries on the first weekday preceding the last day of the month.

The bill would allow for payment of salaries on a different schedule, likely twice per month.

“The Committee has received and reviewed recommendations from both the Chief Administrative Officer (CAO) and the House Inspector General (IG). The IG listed various advantages of converting to a bi-weekly staff pay cycle with a lag as follows:

Adoption of standardized processes

Consistent revenue stream (about 50% of current monthly salary up to 2 weeks earlier)

Deferred taxes

Earlier benefits coverage

$57,000 reduction in payroll accounts receivable (CY2006)

Earlier W-2 processing and year-end balancing possible

Overtime arrears could be eliminated

Disadvantages included:

Implementation costs

One-time employee resubmission of forms regarding tax withholding, TSP loans, additional W-4 withholdings, and direct deposit allocations

One-time employee rescheduling of EFT deductions

Continued general ledger reconciliation monthly requirement

Bi-weekly pay frequency with a lag appears to have the greater number of long-term advantages, including the reduction or elimination of custom reports, optimal data entry and error corrections periods, reduction in labor intensive retroactive transactions, and distribution of personnel actions more evenly throughout the month. The IG estimates that the business process engineering required to effectuate any change will take between a year and 15 months, including the design, testing, and implementation of a bi-weekly staff pay cycle. This estimate would be applicable to the implementation of a semi-monthly pay cycle as well.”

Sponsor:  Rep. Robert Brady (PA-1^st)

Vote: On motion to suspend the rules and pass the bill, as amended Failed by recorded vote (2/3 required): 282 - 144 (Roll no. 681).

Cost to the taxpayers: “CBO estimates that one-time costs to modify or purchase required computer systems would total about $1 million over the next two years, subject to the availability of appropriated funds.”

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