Download
1 / 28
280 likes | 427 Views
Faculty Deferred Pay Town Hall. Agenda. Deferred Pay – Who and Why? Deferred Pay Positions Review Faculty New Hire Action Annual Salary vs. True Annual Salary Deferred Pay “Buckets” Terminations prior to end of contract period Questions and Answers. Deferred Pay – Who and Why?.
E N D
Faculty Deferred Pay Town Hall
Agenda • Deferred Pay – Who and Why? • Deferred Pay Positions • Review Faculty New Hire Action • Annual Salary vs. True Annual Salary • Deferred Pay “Buckets” • Terminations prior to end of contract period • Questions and Answers
Deferred Pay – Who and Why? 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.
Deferred Pay Positions Use the ZPOS transaction to create new faculty deferred pay positions. Employee SubGroup 19 – 9 Month Deferred 20 – 10 Month Deferred 03 – Exempt Monthly (11 and 12 Month Faculty)
Deferred Pay Positions Check previously created positions using transaction PP01. Highlight the Employee Group/Subgroup and view.
Faculty New Hire Action Use transaction PA40 for all new hires. Always start with the Person ID blank. Enter the assignment start date, select Main Campus Create Assignment and then execute.
Faculty New Hire Action An employee recognition box will appear (above), enter the employee’s name, date of birth, gender and social security number. If the employee does not exist in SAP, the following box appears. Click on New Employee.
Faculty New Hire Action Now the Action Infotype appears. Select 04 Faculty Hire as the reason and enter the Position number. You will receive an informational message click the green check and save the infotype.
Faculty New Hire Action Next Infotype 0002. Complete marital status (if known).
Faculty New Hire Action Infotype 0001
Faculty New Hire Action Infotype 0006 The county field is required. The employees check stub will go to this department.
Faculty New Hire Action Now enter the monthly salary. For 9 month deferred, the 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.
Faculty New Hire Action Infotype 0016 (Contract Elements) will be presented at the end of the faculty hire action. Select the correct contract type and save.
Faculty New Hire Action The Faculty Hire is complete.
Basic Pay More examples of Basic Pay calculations: 9 Month Faculty with a contract salary of $90,000. $90,000/9 = $10,000 monthly earned salary. 10 Month Faculty with a contract salary of $90,000. $90,000/10 = $9,000 monthly earned salary. 9 Month Faculty with a contract salary of $67,000. $67,000/9 = $7,500 monthly earned salary. 10 Month Faculty with a contract salary of $75,000. $75,000/10 = $7,500 monthly earned salary.
Annual Salary vs. True Annual Salary True Annual Salary is used to calculate benefits, such as Optional Life Insurance.
Deferral Buckets Deferral Buckets are created for salary, employer paid taxes, and employer paid benefits. Payroll simulations may be run from the Basic Pay Infotype (0008) to display the deferral amounts and amounts to be paid. Deferral “buckets” will normally hold negative balances in the fall, positive balances in the spring. All deferral “buckets” will have a 0 balance at the end of June.
Terminations – Prior to end of Fiscal Year If a 9 or 10 Month Faculty Member is not returning for the next academic year you would normally separate him/her on July 1. This results in normal payments through the end of the year. If it is necessary to separate the faculty member prior to July 1, the system will calculate the pay based on what is earned in the month of termination and the balance in the deferral bucket. Let’s use our 10 Month Returning Faculty Deferral Grid as an example. If our 10 Month Faculty separates on November 1st, the last paycheck will be received on October 31st. The system will calculate what he/she earned for October and then add the deferral balance from the end of September. 12,000 + (-6,000) = $6,000 paid. Deferral balance is 0 after the October payroll runs.
Terminations – Prior to end of Fiscal Year Another example using our 10 Month Returning Faculty Deferral Grid. If our 10 Month Faculty separates on April 16th, the last paycheck will be received on April 30th. The system will calculate what he/she earned for April and then add the deferral balance from the end of March. 6,000 + 6,000 = $12,000 paid. Deferral balance is 0 after the April payroll runs.
Questions Questions and Answers
