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Summer Payroll Review April 2012

Summer Payroll Review April 2012. Today’s Discussion. Summer Session Calendar Review – Sandy Skiles Summer Session Process Review – Sandy Skiles Key Dates Summer Calculator and PA Form Examples – Cindy Konyk FY Grads on Leave for Summer Cost Distribution – Eric Francis

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Summer Payroll Review April 2012

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  1. Summer Payroll ReviewApril 2012

  2. Today’s Discussion • Summer Session Calendar Review – Sandy Skiles • Summer Session Process Review– Sandy Skiles • Key Dates • Summer Calculator and PA Form Examples – Cindy Konyk • FY Grads on Leave for Summer • Cost Distribution – Eric Francis • References/Links

  3. Purdue University2012 Summer Employment CalendarWest Lafayette

  4. Payroll Calendar Notes • Academic year staff who work during the summer will receive summer pay on the last working day of the month. Summer pay will be included in regular pay for May and August, if applicable. • May and August must have 22 days. To pay 1/18th of the annual salary in May and August, the OnePurdue/ SAP system pays 11 days out of 22 days (exactly 1/2 of monthly pay) for academic year staff. The period end date in May and August, the period start date in June and July, and the number of days in June and July may be adjusted to accommodate 22 days in May and August.

  5. Key Date Reminders – Spring/Summer 2012 • Remember, the AY contract calendar and AY pay calendar are not the same; therefore effective start/end dates may be different than actual start/end dates. • The AY Calendar for the Spring Semester 2012 ends 5/13/12 (WL). • For Spring AY separations, the effective date should be 5/16/12. Using this date allows for 11 days to be paid in May for the AY contract period. For academic year faculty, A/P and post docs, benefits apply through 5/16/12.

  6. Key Dates – Spring/Summer 2012

  7. Key Dates – Summer 2012

  8. Key Dates – Summer 2012

  9. Key Dates – Summer/Fall 2012

  10. Summer Session Graduate Appointments – Reminders for 2012 • AY position in Spring to FY position in Summer (effective 5/14/12; 1st possible employment date after the academic year ends – Spring Graduation). • A new PERNR is created – position with employee subgroup (12 month FY exempt). DO NOT TRANSFER. • Complete a PA form to Add Additional Appointment (12 month FY exempt). • Cost distribution will be entered separately for each position with the applicable effective dates, therefore charging will be accurate. • PAR’s will be accurate for each appointment. • Grad reappointment process can be used for AY position for fall. • NOTE:If grad student employee does not return in the Fall, 2 PA forms are required (one to end additional and one to separate).

  11. Summer Session Graduate Appointments – Reminders for 2012 • FY position in Spring to AY position in Summer (effective 5/16/12; 1st possible employment date after the academic year ends – Spring Graduation). • A new PERNR is created – position with employee subgroup (9 month AY exempt). DO NOT TRANSFER. • Complete a PA form to “Add Additional Appointment” (9 month AY exempt). • Complete a Summer Pay Calculator. • Complete a PA form to “End Additional Appointment” (12 month FY exempt) – to stop pay. • When submitting more than one payroll form, complete “page ___ of ___ pages” on each form. STAPLE documents together!! Do not use paperclips.

  12. Grid for Graduate Student 2012 Summer Appointments NOTE: If you know a graduate student will not be returning in the Fall, prepare a PA form to separate now. Only active appointments will come forward on the grad reappointment list.

  13. 2012 Summer Pay Calculator

  14. 2012 Summer Pay Calculator • Changes on 2012 Summer Pay Calculator • Rate for calculating summer pay has changed from 2.5% to 2.778% of annual salary per week. • Reminder: Date of Origin = last day worked in pay period (departments to choose date from drop down) • To view summer payments in SAP • To view summer payments, use PA20, info type 15 (Additional Payments), STY 1315, click All button and overview (sun over the mountain). • Examples

  15. FY Grads on Leave for Summer • Prepare Form 33A (Request for Absence from Campus) covering the unpaid leave period http://www.purdue.edu/hr/xls/33ABSENCE.xls • Prepare Leave Action Form (LAF) and provide account information for charging of fringe benefits (University portion) to department specified account(s). Multi-sponsored and voluntary support funds can be used to pay for the fringes, however, Federal, State and Industrial funds are not appropriate. Send Leave Action Form directly to the HR Service Center, FREH (Cindy Stephens). http://www.purdue.edu/hr/xls/LeaveActionForm.xls • Refer to BPP: Charging Fringe Benefits for Unpaid Leave of Absence-Interim https://www2.itap.purdue.edu/bs/BPP/Processes/ChargingFringesUnpaidLeaves.pdf • Grads will still be in “employment status” but because they aren’t being paid their insurance fees will accrue. When the grad comes back after the summer is over, the premiums will be deducted from their first paycheck for those fees they accrued over the summer. Refer to the Grad Employment manual for further details. http://www.gradschool.purdue.edu/downloads/Graduate_Student_Employment_Manual.pdf

  16. Cost Distribution for Summer 2012 Payroll(s) For AY staff Pay Period #5 cost distribution must be based on dates below: • May AY cost distribution is 5/01/12 – 5/15/12 (11 work days) • The range of dates for cost distribution for 2012 Summer Session Pay is: 5/16/12 – 8/12/12 May: 5/16/12 – 5/30/12 June: 5/31/12 – 6/30/12 July: 7/01/12– 8/01/12 August: 8/02/12 – 8/12/12 • Cost distribution for the 2012-13 academic year (Pay Period #8) will begin on 8/13/12.

  17. Cost Distribution Reminders • Summer Session Pay is paid as lump sum payments monthly. • The cost distribution that is applied to the payment is determined by the date of origin of that payment. • You should set the cost distribution to the same value for the entire month.

  18. Summer Pay Distribution for AY Employees Summer pay for AY employees is a lump sum payment, and therefore percentages must be figured for the entire month. • Example: • PI worked 100% June 1st – June 15th on Grant A • PI worked 100% June 16th – June 30th on Grant B • Because AY employees are paid with lump sum payment each month, the distribution in IT27 at the pay date will be the distribution for the entire payment. Therefore, distribution should be calculated based on effort for the entire month. • In this case, the distribution in IT27 should be as follows: • For the period of May 31st – June 30th, PI worked 50% on Grant A and 50% on Grant B.

  19. Cost Distribution Notes • Use the copy button rather than the change button (pencil). • Verify that the distribution equals 100%. • Do not enter more than 12 lines of distribution. • Do not enter a cost center with a real internal order • 8/1/12 will be paid in the July pay check – for grants expiring 7/31/12, choose 7/31/12 as the Date of Origin on the summer pay calculator for PP 7. • If working on 8/1/12, allow for this effort in your cost distribution for pay period 7.

  20. Group Term Life Imputed Income • The value of Group Term Life Insurance above $50,000 that is provided to employees from Purdue is subject to Social Security and Medicare taxes. • FICA Taxes (Social Security and Medicare) are withheld from an employee’s paycheck based on the cost of the amount of coverage paid by the University with a benefit above $50,000. • These taxes are withheld from an employee’s payroll 12 times per year for Monthly staff and 26 time per year for Biweekly staff. If no earnings during a pay period – these taxes are carried forward to the following payroll period.

  21. Current Posting Issues: • FICA Taxes have an employer match component. No carry-forward – charges will hit whatever accounts are on IT0027 (cost distribution) during that time period, even if no earnings. • If no summer payroll added on IT0015 – employee record still runs through payroll. FICA employer charges for Group Term Life Imputed Income still hitting accounts with no earnings. • SPS accounts on IT0027 records when no effort expended on projects creates a posting issue of unallowable charges.

  22. Business Process Refresher for Summer 2012 • Departments review IT0027 records for those AY staff that are not working during summer months – June and July. T-code: ZHR_NOAYSUMMER report was created to help identify staff. Changes only required for staff eligible for life insurance (i.e. grads excluded) • If Sponsored Program Accounts are on IT0027 record – must change to home Cost Center and General Fund (21010000) during summer period so imputed income FICA employer charges will hit central pool accounts. • If Gift or Auxiliary type fund that normally pays fringe benefit charges – must leave IT0027 record as is and charges will post to these accounts during non work months (normally June and July).

  23. Example: • Faculty working May and July 2012 on SPS account but not working June or August 2012: • IT0027 should reflect SPS account for May and July pay period dates and home cost center for June pay period dates. • Fannie Faculty – Pernr 10001417 – home cost center Mathematics – North Central 3004018000 08/02/201212/31/9999 07/01/201208/01/2012 05/31/201206/30/2012 05/16/201205/30/2012 11/16/200905/15/2012

  24. Example May 2012 distribution 05/16/2012 To 05/30/2012 June 2012 distribution 05/31/2012 To 06/30/2012

  25. Example July 2012 distribution 07/01/2012 To 08/01/2012 August 2012 and beyond distribution 08/02/2012 To 12/31/9999

  26. Example Posting 05/01/12 - 06/30/12 05/31/2012 05/31/2012 05/31/2012 05/31/2012 05/31/2012 05/31/2012 05/31/2012 05/31/2012 05/31/2012 05/31/2012 06/30/2012

  27. T-code to identify life insurance eligible staff with no June/July summer earnings • ZHR_NOAYSUMMER – pull report by org unit • QRC available on the Costing website https://www.purdue.edu/costing/BPM/pdf/QRC__ZHR_NOAYSUMMER_report.pdf • Link to QRC is available on the Payroll website https://www.purdue.edu/business/BPM/pdf/QRC__ZHR_NOAYSUMMER_report.pdf

  28. Summer Tips/Reminders • Watch for holidays in May and July – EE must be in pay status day before and day after holiday to receive pay for the holiday. • Separate calculators for each fiscal year for budgeted staff • Faculty, A/P, Continuing Lecturers, Post Docs, etc. • Current salary–always use Full-Time Academic Year Salary Value • If PA20 shows 50.00 CUL and $20,000 annual then full-time annual is $40,000. (i.e. Full-time annual rate = annual rate divided by .CUL ($20,000 / .50 = $40,000) • Department Contact (name & phone number) – person to call if questions with forms submitted to PASC. VERY IMPORTANT! • When submitting more than one payroll form, complete “page ___ of ___ pages” on each form. STAPLE all documents together!! Do not use paperclips.

  29. References/Links: • Provost Office Summer Session Guidelines: http://www.purdue.edu/provost/documents/Summer%20Session%20Guidelines%202012.docx • Executive Memorandum C-26 (Employment Period for Academic-Year Staff:http://www.purdue.edu/policies/human-resources/c-26.html • Payroll Website:http://www.purdue.edu/business/payroll/ • Payroll Appointment Service Center Website:http://www.purdue.edu/business/payroll/PASC/index.html • Executive Memorandum C-18 (Compensation Policies for University Staff Members Participating in Continuing Education Activities):http://www.purdue.edu/business/Executive_Memoranda/C/c-18.html • Executive Memorandum C-40 (University Policy on Compensation for Summer Intensive Instructional Activities and Non-Continuing Education Overload Activities: http://www.purdue.edu/policies/human-resources/c-40.html

  30. Thank You! Thank You! Thank You!

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