FISCAL NOTE
Date Requested: March 03, 2016
Time Requested: 10:54 AM |
| Agency: |
Auditor, State of WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1286 |
Introduced |
HB4616 |
|
|---|
| CBD Subject: |
Counties |
|---|
|
FUND(S):
Sources of Revenue:
Other Fund County Funds
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of the proposed House Bill 4616 is to provide an option for County Commissions in West Virginia to pay county officials and employees on a bi-weekly, in addition to the currently authorized payment methods which are monthly and semi-monthly.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Memorandum
We are able to identify some potential minimal costs to the various counties created through the proposed enactment of the provisions of House Bill 4616. However, we lack access to the necessary records concerning the mix of employees between those deemed to be covered by the Federal Fair Labor Standards Act who are required to be paid on an hourly basis for all hours worked and have a Federally-mandated work year of 260 days (52 weeks x 5 days per work) as opposed to salaried employees (exempt from overtime) who on a monthly or semi-monthly have a work year defined as 12 continuous months, irrespective of whether the work year consists of 260, 261, or 262 days. Accordingly, the counties would accrue potential additional payroll expenses for any such Exempt employees with respect to regularly-scheduled days worked above and beyond 260 days. However, nothing contained in the bill would make such Exempt employees eligible or require payment for any overtime hours worked by these Exempt employees. In addition, any such payroll payments would be considered as a part of the Final Average Salary of such employees in the Public Employees Retirement System of the West Virginia Consolidated Public Retirement Board and the various County Commissions to withhold contributions from affected Exempt employees pay and provide employer matching as well.
Overall, we believe any additional costs to the various County Commissions would be minimal and would be offset by the managerial and processing efficiencies inherent in a bi-weekly pay cycle where all payroll periods consist of 10 work days within 14 calendar days. As a result, the employees’ daily rate of pay is constant and no subject to change each pay period. Accordingly, the potential for payroll calculation errors for retiring or resigning employees is significantly decreased.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov