Transcript June 7, 2010 Payroll Rep Meeting Presentation
6/7/2010
Payroll Representatives Meeting June 7, 2010
1
6/7/2010
Agenda for Today
. What is Driving Change at UMB? .
Salary Directives . Hiring Freeze Guidelines . Additional Compensation Processing .
Future Planned Changes
2
What is Driving Change at UMB?
• Unfavorable Audit Results by the Office of Legislative Audits • Findings of Payments Made to Employees With No Policy to Support the Payment • UMB Required by Maryland Legislation to submit information of additional compensation paid to employees during FY2010, including value of the payment, purpose of payment and base salary of employee earning the payment 6/7/2010 3
What is Driving Change at UMB?
• UMB required to identify all types of earnings paid during FY2010 (except for regular earnings and overtime).
– Leave payouts for terminated employees – Shift differential and on-call non-exempt payments – Payments to employees working outside of the U.S.
– Payments for adjunct faculty pay – Regular earnings for employees who are exempt from FICA withholding – New codes and processes for Administrative Supplements and Faculty Incentive Plans (training has already been done) – Supplemental Payments 6/7/2010 4
What Does This Mean For UMB? It’s a New World!
• • • • • • Campus Commitment to Compliance More Training New Codes and Processes More Documentation More Tracking More Reporting – CUMULATIVE taxable compensation exceeding 10% reported to USM bi-weekly for Faculty and Staff throughout FY2011 • Includes Supplemental Payments and Retention Increases • Excludes Summer Work for 10 month faculty, Teaching Overload, On-Call pay and Clinical Overload.
6/7/2010 5
FY2011 Hiring Freeze Exception Form
• • • Hiring Freeze – Continues throughout FY2011 Same Guidelines Found at http://www.hr.umaryland.edu/ 6/7/2010 6
FY2011 Salary Directives
Highlights • Applies to All Faculty and Staff on Regular, Contingent Category I and Contingent Category II Status – REGARDLESS OF FUND SOURCE • No COLA, no merit increases, and no University bonuses for faculty and staff in FY2011 • Salary increases are allowable for promotions and re-evaluations for faculty and staff • Opportunities for faculty retention adjustments • Graduate assistants, fellows, post-doctoral and student employees are excluded from the FY2011 salary directives • No salary increases available for contract renewals for contract faculty and contingent staff employees http://www.hr.umaryland.edu/compensation/meritcola.htm
6/7/2010 7
FY2011 Salary Directives
• • • • • FACULTY RETENTION Should be used Judiciously - USM expects that institutions will not send faculty retention requests for more than 5% of their faculty population.
Intended for Faculty being actively recruited by other institutions or where there is compelling evidence a pre emptive action is necessary for retention.
Must have one of the following: – Written offer to the Faculty member from another institution – Written evidence, including email or other correspondence, that the faculty member is being recruited seriously by another institution, or a search firm for an institution, at a compensation level likely to exceed the faculty member’s current compensation – Documentation that the department has experienced retention problems in recent years that likely will result in the loss of a valuable faculty member if a retention adjustment is not made – Other strong evidence that the institution is at imminent risk of losing a faculty member in the absence of a retention adjustment Itemized detail of retention adjustments in excess of 10% with explanation must be reported to USM Retention recommendations with supporting documentation should be forwarded to Dr. Malinda Orlin for review. Dr. Orlin will provide her recommendations to the President 6/7/2010 8
FY2011 Faculty Retention Form
For 7/1/10 Effective Date:
• • • • Retention requests due to Dr. Orlin by 6/11/10 Approved Retention Adjustments on EA Forms Due 6/17/10.
Please allow time for processing Faculty Retention Adjustments must be reported to the Chancellor Process will continue as stated until further notice http://www.hr.umaryland.edu/main/hrforms.htm
6/7/2010 9
Legislative Audit Requirements
Important Recent Faculty Policies
•
II - 1.03(A) - UMB Policy on Concurrent Faculty and Administrative Appointments
Administrative Supplements now require separate appointment letter containing 5 elements identified in this policy
•
II - 1.21(B) - UMB Policy on Faculty Supplemental Pay for Summer Work
Provides guidance on summer work for 10 month faculty
•
II - 1.21(C) - UMB Policy Concerning Supplemental Payments and Salary Adjustments for Faculty
Identifies circumstances for which supplemental pay or salary adjustments may be paid to faculty.
http://cf.umaryland.edu/hrpolicies/
6/7/2010 10
6/7/2010
Legislative Audit Requirements
For All Additional Compensation
•
Identify
•
Track
•
Report
11
Legislative Audit Requirements
Additional Compensation
Additional Compensation is defined as all earnings that do not fall into the categories of regular earnings or overtime earnings
6/7/2010 12
Legislative Audit Requirements
ADDITIONAL COMPENSATION EXAMPLES
o o o o o Leave Payouts for terminated employees Shift Differential Adjunct Faculty Pay for Existing UMB Employees Allowances for Employees Working Overseas Supplemental Payments 6/7/2010 13
Legislative Audit Requirements
o
Our Steps Along The Way…
Met with School and Administrative Department leadership to determine types of payments made to employees o Ensured that each of these payment types has a corresponding Earnings Code o Ensured that all earnings codes have a corresponding UMB policy to support their payment 6/7/2010 14
Legislative Audit Requirements
NEW SUPPLEMENTAL PAY CATEGORIES AND EARNINGS CODES FOR FACULTY
Description Earnings Code UMB Policy
Teaching Overload Professional Consulting* Continuing Education Lump Sum Grant (MHEC) Committee Supplement Secondary Staff Employment TOV CON CED GLS COM SEC UMB II-1.25 (A ) UMB II-3.10 (A ) UMB II-1.21 (C ) UMB II-1.21 (C ) UMB II-1.03 (A ) UMB II-1.21 (C ) Secondary Faculty Appointment, Affiliate SEA UMB II-1.21 (C ) *Professional Consulting cannot be grant funded 6/7/2010 http://cf.umaryland.edu/hrpolicies/ 15
Legislative Audit Requirements
NEW SUPPLEMENTAL PAY CATEGORIES AND EARNINGS CODES FOR EXEMPT STAFF
Description Earnings Code
Secondary Staff Employment Secondary Adjunct Faculty Appointment SEC SEJ
UMB Policy
UMB VII-9.11 (A ) UMB VII-9.11 (A ) http://cf.umaryland.edu/hrpolicies/ 6/7/2010 16
Legislative Audit Requirements
SUPPLEMENTAL PAYMENT CHANGES FOR
o
FACULTY AND STAFF EMPLOYEES
Supplemental Payments – Effective June 20, 2010, the Earnings Code SUP will no longer be used o Any payments to existing UMB employees using Supplemental Pay must now be coded with the appropriate Earnings Code that represents the work to be performed.
o Internal processes within your school/department will not change 6/7/2010 17
Legislative Audit Requirements
NEW
FORMS REFLECTING NEW EARNINGS CODES:
o o Supplemental Compensation for Faculty Increased Responsibilities and Supplemental Payment Request for Exempt Staff Both new forms allow you to specify an Earnings Code.
To be used for all requests as of the beginning of Pay Period 11-01 and forward 6/7/2010 18
Legislative Audit Requirements
ALL Additional Compensation Components with Codes Additional Compensation Component Earnings Code
Summer Work (10 month faculty) Teaching Overload Professional Consulting (Cannot be Grant Funded) Honorarium Committee Supplement Continuing Education Clinical Overload Lump Sum Grant (MHEC) Regular/C2 Staff with Secondary Employment Regular/C2 Staff with Adjunct Faculty Appointment Regular Faculty with Secondary Staff Employment Regular Faculty with Secondary Faculty Affiliate Appointment SUM TOV CON HON COM CED CPP GLS SEC SEJ SEC SEA 6/7/2010 19
6/7/2010 SUPPLEMENTAL COMPENSATION REQUEST FOR FACULTY 20
Procedures for Supplemental Compensation Request for Faculty Relates to UMB Policy II-1.21 (C ) effective 12/09; Procedure Date 7/1/2010
1.
2.
3.
4.
5.
6.
7.
8.
a) b)
Supplemental Compensation Request for Regular Faculty ("Request") form must be fully approved as indicated by the “Request Type”. Requests for Professional Consulting and Non-MHEC Lump Sum Grants, secondary staff employment (other than administrative appointments) and secondary adjunct appointments must be pre-approved prior to commencement of increased responsibilities.
A Request should include a fully completed form and all required attachments: To process Approval Request: Pre-approval Required - If the Request requires pre-approval, it should be submitted to FS-Payroll. No Payroll Adjustment Form will be needed for the pre-approval. FS-Payroll will forward the Request to the President or his designee for approval. FS-Payroll will forward all approved and denied Requests back to the paying department. Upon receipt of approved Request, the paying department should inform the faculty member that he/she is authorized to perform the supplemental work as described in the Request.
Pre-approval NOT Required - If the Request does not require pre-approval, it can be submitted to FS-Payroll with a Payroll Adjustment Form for processing, provided the Request has all of the appropriate approval signatures. FS-Payroll will forward all Requests to the President or his designee for approval. FS-Payroll will forward denied Requests to the paying department. Payroll will process all approved Requests.
To process Payment Request, complete a Payroll Adjustment Form to make payments authorized by an approved Request. Approved Payroll Adjustment Forms should be sent to FS-Payroll with a copy of the approved Request.
Payroll will review requests for completeness before processing. Payment Requests may be denied if the documentation submitted does not match the information noted on the Request.
Each academic or administrative paying department must maintain accurate records of approval and payments for increased responsibilities payable by supplemental compensation. FS-Payroll will image all approved Requests.
All USM and UMB policies related to the additional duties apply, as indicated by the Earnings Code.
6/7/2010 21
Legislative Audit Requirements
• • •
Completing New Supplemental Compensation Request Forms for FACULTY
Procedures have been developed for form When request form is printed, procedure will print along with request form.
Pre-approval required before work begins for: – Faculty Professional Consulting Assignments – Any Lump Sum Grant Other than MHEC – Any Faculty Request WITHOUT an existing Earnings Code 6/7/2010 22
Legislative Audit Requirements
• • • • • • • •
Completing New Supplemental Compensation Request Forms for FACULTY
Review policy related to Earnings Code Appropriate Earnings Code must be selected Provide Start and End Dates Attach a letter describing the increased responsibilities, including where work is to be performed.
Indicate Single Task or Multiple Tasks Obtain Employee, Paying and Home Department Signatures. Submit to FS-Payroll with Payroll Adjustment Form FS-Payroll obtains approval of President/Designee and processes request.
6/7/2010
Denied requests are returned to the Department
23
Legislative Audit Requirements
• •
When to Use Faculty Supplemental Compensation Request Forms
Used same as today except Pre-Approval required for Professional Consulting, Non-MHEC Lump Sum Grants, and Requests without existing Earnings Code Will also be used to pay existing faculty performing secondary Adjunct or Staff jobs 6/7/2010 24
INCREASED RESPONSIBILITIES AND SUPPLEMENTAL COMPENSATION REQUEST FOR EXEMPT STAFF
Form Revised
Same Pre-Approval Process as Required Effective 6/29/09 6/7/2010 25
Procedures for Increased Responsibilities and Supplemental Compensation Request for Exempt Staff Relates to UMB Policy VII-9.11(A) effective 6/29/09; Procedure Revision Date 7/1/2010 (Replaces Procedure Dated 6/29/09)
2.
3.
4.
5.
1.
6.
An Increased Responsibilities and Supplemental Compensation Request ("Request") form must be fully approved by UMB prior to commencement of increased responsibilities.
A Request should include the fully completed form and all required documents.
Request forms should be submitted to HRS-Compensation for review. HRS-Compensation will forward Requests to the President or his designee for approval.
HRS-Compensation will return each approved or denied Request to the paying administrative or academic department.
Upon receipt of an approved Request, the paying department of the affected employee should inform the employee that he/she is authorized to perform the supplemental work as described in the Request and send an approved copy to the employee’s home department.
7.
8.
9.
Complete a Payroll Adjustment Form to make payments authorized by an approved Request. Approved Payroll Adjustment Forms should be sent to FS-Payroll with a copy of the approved Request. Each academic or administrative paying department must maintain accurate records of approval and payment for increased responsibilities payable by supplemental compensation. FS-Payroll will image all approved Requests.
Requests that have not been fully approved prior to commencement of increased responsibilities will not be approved. Exceptions may be made only for emergency staffing issues and as approved in advance by the Dean/VP and HRS-Compensation 10. All USM and UMB policies related to the additional duties apply.
6/7/2010 26
Legislative Audit Requirements
Completing New Increased Responsibilities and Supplemental Compensation Request for Exempt Staff
• • •
What is not changing….
When request form is printed, procedure will print along with request form Pre-approval required before work begins Authorized signatures are the same 27 6/7/2010
Legislative Audit Requirements
Completing New Increased Responsibilities and Supplemental Compensation Request for Exempt Staff
• • • •
What is different…
Appropriate Earnings Code must be selected Provide Start and End Dates Attach a letter describing the increased responsibilities, including where work is to be performed Indicate Single Task/Multiple Tasks Submit requests approved for payment to FS Payroll with Payroll Adjustment Form 28 6/7/2010
6/7/2010
Payroll Adjustment Form Change
Revised Payroll Adjustment Form Revised Form Includes New Earnings Codes Appropriate Earnings Code Must Be Selected Consistent with Approved Documentation Available Now Old Forms Will Not Be Accepted After Pay Period 10-26 29
6/7/2010
Upcoming Changes for FY2011
Contingent Category I Form Revised for Faculty and Staff Special Pay Form Revised for Faculty and Staff Contingent Category II Form and Chart Upgraded Training to be held later in June/early July
30
6/7/2010
Questions?
31