Additional Compensation workshop

Agenda

• Changes in methodology• Academic year additional comp• Summer Session pay• Summer research pay

• Strategies and best practices

• Other updates• Summer 2013 dates• Current NIH cap• UCPath future implications

Context for changes

• NSF audit

• UCPath

• Transition of pay schedules to MO and BW only

Additional Compensation during the Academic Year

• Types:• University Extension teaching• Faculty consultant services• Housing allowance• Administrative stipends

• All appointments set up on a monthly (MO) pay basis.

• Payments can be made on the BW pay date if done via an LX transaction.

Summer Session payments

• One payment per session worked

• Will be paid on the MO pay date

Summer research payments

• All summer research compensation to be paid using 19 day methodology• Basis for the 19 day method• Allows consistency in effort reporting• Can pay 3/9ths from 19900 in the first summer

• June compensation to be paid at the June (pre-merited) rate

• All paid on MO pay schedule

Flat rate summer research payments

• Recruitment and Retention commitments• May be paid out over multiple summers.• Can be awarded in terms of 1/9ths or flat amount

but always paid on percentage basis.

• Use 19 day chart with modification to percent of time to get dollars to be paid• Same methodology used if needing percentages that

don’t fall on the chart• Example: pay $5,000 in summer salary to a faculty

member with a 1/9th rate of $8,000.

Flat rate payment: EAPP

Flat rate payment: comments

Flat rate; time reporting

Strategies and Best Practices

• Coordination when multiple departments are involved

• Record keeping• Documentation of faculty requests and retro

changes• Pay should as closely as possible reflect the actual

service period and effort

• Requests in days vs. percentage of the period• If in days, use the actual days• If in percentage, can either break into days or divide

over the 19 day period; i.e. 50% of 1/9th, 50% of 19 days or a percentage of 10 days

50% over 19 days

50% of the 19 days

Strategies and Best Practices

• Make sure your documentation is clear:• If the faculty member requests “one month” do they

mean “a calendar month” or “19 days for 1/9th

effort?” • Document “interpreting” done by the department

• Understand the “day limits”;• 57 days per summer (38 days for NSF)• Not 19 days per month; i.e. can work more than 19

days in a month

• Advise faculty to consult with their tax advisor if they are concerned about the withholding amounts over the summer

“1/9ths” after retirement or resignation

• Can’t pay as additional compensation after separation or retirement date

• For emeriti faculty: • Appointment as Research Professor• Convert annual salary to 11/12 rate• Pay as REG pay, up to 43% after a one-month break

• For faculty who resign:• Appoint as a Researcher• Convert annual salary to 11/12 rate• Pay as REG pay up to 100% with no date limitations

Available Dates for 2013 Additional Compensation

Month Number of Days

PercentTime

June 17-30 10 .5263

July 1-31 23 1.2105

Aug. 1-31 22 1.1579

Sept. 1-20 15 .7895

Summer Months 2013

JUNE   JULY

S M T W T F S   S M T W T F S

1     1 2 3 4 5 6

2 3 4 5 6 7 8   7 8 9 10 11 12 13

9 10 11 12 13 14 15   14 15 16 17 18 19 20

16 17 18 19 20 21 22   21 22 23 24 25 26 27

23 24  25  26 27  28  29    28 29 30 31    

 30                            

AUGUST   SEPTEMBER

S M T W T F S   S M T W T F S

    1 2 3    1 2 3 4 5 6 7

4 5 6 7 8 9 10   8 9 10 11 12 13 14

11 12 13 14 15 16 17   15 16 17 18 19 20 21

18 19 20 21 22 23 24   22 23 24 25 26 27 28

25 26 27 28 29 30 31   29 30

                       

                             

CHART #1 - "19-DAY CHART"(Daily Factors)

Red Binder VI-12 

 

# of Working # of Working Days used Dist % days used Dist. %

 1 .0526 13 .68422 .1053 14 .73683 .1579 15 .78954 .2105 16 .84215 .2632 17 .89476 .3158 18 .94747 .3684 19 1.00008 .4211 20 1.05269 .4737 21 1.105310 .5263 22 1.157911 .5789 23 1.210512 .6316

NIH Cap

• Rate maximum changes each January 1 and is dependent on start date of award; set by NIH

• January 1, 2012 monthly maximum is $14,975 so applies to faculty with salary over $134,775.

• Less than 3/9th max on NIH: pay with ARC.

• NIH supplement uses dos code AAC, TC 3998

UCPath

• Go-live date for UCSB is July 1, 2015.

• How additional compensation is processed will change• New terminology• New processes• Funding decisions/input to remain at the

departmental level