Transcript Provost Presentation on Deferred Pay

Faculty Deferred
Pay
1
Agenda
•New Hires
•Salary Changes
•Position Changes
•Additional Assignments
•Terminations
•Calculations
•Posting
•Questions
2
Deferred Pay
Deferred Pay is specifically for Faculty who have a 9 or
10 month contract. These faculty members earn their
salary over the 9 or 10 month contract period, but are
paid over 12 months. New 9 and 10 month faculty
begin their assignments in August and are paid over 11
months.
9 Month Faculty Members earn their salaries from
August 16th through May 15th.
10 Month Faculty Members earn their salaries from
August 1st through May 31st.
Faculty salaries will be charged to the appropriate
accounts (based on FES) as the money is earned.
3
New Hire – Basic Pay
For 9 month
deferred, the
monthly salary
amount should be
the annual
contracted salary
divided by 9. For
10 month divide by
10. So for this
example, the
annual contracted
salary is $90,000.
$90,000/9 is
$10,000. Enter
10,000 in the
amount field. The
Annual Salary will
be overstated. The
True Annual Salary
will be calculated
for you.
4
New Hire – Contract Element
Infotype 0016 (Contract Elements) will be presented at the
end of the faculty hire action. Select the correct contract
type and save.
5
Salary Changes
Salary Changes for deferred pay faculty should occur on
the 1st day of the month.
Remember that the amount of money that was
previously deferred is used to calculate the monthly
payment. You cannot just take the new annual contract
and divide by 12.
6
Positions Changes
Position Changes for deferred pay faculty should be
done on the first day of the month.
Anytime you have faculty changing contract periods,
please watch there payroll results to assure they are
being paid correctly. (Note: You should be using
transaction ZHR_checkpay to check payroll each pay
period.)
If an employee transfers from a biweekly position to a
deferred pay position, you should contact the
compensation office for assistance on the timing of the
transfer.
7
Additional Assignments
Many Deferred Pay Faculty have additional assignments for
supplemental payments (such as Summer Research,
Summer Session, etc…), these assignments should be set
up for full months whenever possible to avoid problems
with calculating deferred pay.
When you create these assignments use the first day of the
month as the start date, when you end the assignments use
the first day of the following month as the end date.
The payments on these assignments are set up as recurring
payments (IT0014) or additional payments (IT0015). You
control the payment amount – there is no proration.
8
Terminations
Deferred Pay Faculty who have fulfilled their contract and
are not returning to the University, should be terminated on
July 1. The balance in all deferral buckets will be paid out
during the June payroll process.
If termination occurs in the middle of the contract, the
amount earned for the month will be prorated and the
deferral bucket will be cleared. It is possible that this will
result in a claim (especially in the fall). Contact the payroll
office for assistance in resolving the claim.
9
Calculations
Formula for Calculating Deferred Pay:
((A*B)+C)/D = E
A = Monthly Earned Salary
B = Months Remaining to Earn
C = Deferral Bucket Balance (after last payroll)
This information is available on the payroll simulation.
(IT0008)
D = Months Remaining to be Paid
E = Monthly Salary Paid
Calculation Spreadsheets are available on the web.
http://www.uky.edu/IRIS/HR/
10
Posting
Charges will be posted as they are earned.
Please use the BW Labor Distribution reports,
especially when you are looking at the posting for
entire departments.
Transaction ZCCWBS is still available, but should be
used only when you are looking at a small number of
people.
11
Questions
Questions
12