University-yearPay Cycle Changes

Eliminate Schedule II(Non-LEO Faculty)

May 2009Dearborn Campus

U Yr Schedule Chg Interchg Dearborn 05_09.ppt

Topics to be Covered

Overview of change“Catch-up” Payments Made to FacultyHR Appointment DataImpact on Federally Sponsored Funding

during Academic YearPay Cycle Comparison – Current and NewExample of Transition Year General Ledger

(GL) DistributionResource Information

Overview of Change Eliminate Schedule II pay cycle that was originated on 9/1/2001

Reasons for change University-year Design Group Recommendations IRS Notice issued in July 2008, impacting deferred compensation status

Return to salary pre-payments for July and August for September 1st new hires Pre-payments will be made in early September once the faculty member is on

campus

Terminations, at the end of the academic year, will be paid through June 30th. Benefit coverage will end April 30th.

Salary for Fall Term will be paid July thru December

Salary for Winter Term will be paid January thru June

Prorations NO LONGER needed for effort, compensation rate or DBE changes effective September 1st or January 1st Prorations, when needed, will be calculated on a “per term” basis.

“Catch-up” Payments Made to FacultyPartial group of University-year faculty paid

2/12ths in December 2008 – Group 1Paid in calendar year 2008 due to deferred

compensation impact of IRS NoticeUniversity-year faculty to be paid 2/12ths in

June 2009 – Group 2Will be paid in the same academic year as

Group 1. Conversion date to Schedule I for these two

groups is 9/1/08Remaining University-year faculty on Leave

without salary will be paid 2/12ths upon return from Leave

HR Appointment DataJOB Data

Merit increases will be effective September 1st and will not be paid retroactive to July 1st

Effort changes effective September 1st will be retroactive to July 1st and processed at the previous academic year pay rate for July and August

Leaves of Absence with or without pay effective September 1st will be retroactive to July 1st and should be processed before July

DBE DataUniversity Year changes to Short Codes and

distribution percentages effective September 1st will be retroactive to July 1st

HR Appointment Data (cont’d)

Pre-approved Promotions Process HRRIS will process the pre-approved promotional

appointment changes for regular, clinical and research faculty in June with the effective date of September 1st

University Year DBE Process HRRIS will process the university year department

budget earnings for the next academic year in June with the effective date of September 1st

Impact on Federally Sponsored Funding during Academic Year

Pre-payments in July and August Will result in “blended pay rate” being used for Fall

Term charges to the federal sponsor

DBE DataSponsored U-Yr Flag will be effective each Sept 1st

to reflect the entire pay cycle for the academic year

General Ledger Account ValuesDifferentiate salary charged to federal sponsor

during academic year

General Ledger Account Values General Ledger Account Values will differentiate the charges

to a federal sponsor (1/9th or 1/8th) from the charges to other funding sources over 12 months.

Job CodeGL Account

(Charged over 12 months)GL Account

(Charged over 9 months) Job Code Title

128870 510600 501000 Faculty Associate

128900 500100 500110 Research Investigator

128920 500100 500155 Assistant Research Scientist

128940 500100 500175 Associate Research Scientist

128960 500100 500150 Research Scientist

129500 500100 500125 Research Professor

129520 500100 500130 Associate Research Professor

159100 510200 500800 Associate Director

201000 500400 500450 Professor

201500 500700 500750 Associate Professor

202000 500900 500950 Assistant Professor

202840 501430 501480 LEO Lecturer II

202860 501440 501480 LEO Lecturer III

202880 501460 501480 LEO Lecturer IV

203000 501400 501450 Lecturer

General Ledger Distribution for Transition Year Example: A full-time faculty member has one appointment on the Dearborn campus and

is partially funded by federal sources. The 9/1/08 compensation rate is $60,000. The 9/1/09 compensation rate is $72,000. The appointment is charged to the General Fund (120000) for 50% allocation and federally funded sponsored project (034000) for 50% allocation.

  034000 120000   090833 090834   034000

Month Earn Code Amount Earn Code Amount Earn Code Amount  Amount Gross Pay

   

Earn Code Amount

July 2009       2,500.00   2,500.00   5,000.00   

August       2,500.00   2,500.00   5,000.00   

September GLA 4,250.00 REG 3,000.00 ENP -1,250.00   6,000.00FBI 175.00

October GLA 4,250.00 REG 3,000.00 ENP -1,250.00   6,000.00FBI 175.00

November GLA 4,250.00 REG 3,000.00 ENP -1,250.00   6,000.00FBI 175.00

December GLA 4,250.00 REG 3,000.00 ENP -1,250.00   6,000.00FBI 175.00

January 2010 GLA 4,500.00 REG 3,000.00 ENP -1,500.00   6,000.00 FBI 210.00

February GLA 4,500.00 REG 3,000.00 ENP -1,500.00   6,000.00 FBI 210.00

March GLA 4,500.00 REG 3,000.00 ENP -1,500.00   6,000.00 FBI 210.00

April GLA 4,500.00 REG 3,000.00 ENP -1,500.00   6,000.00 FBI 210.00

May REG 3,000.00 ENP 3,000.00   6,000.00

June     REG 3,000.00 ENP 3,000.00   6,000.00    

Subtotal   35,000.00   35,000.00   0.00   70,000.00    1,540.00

July     REG 3,000.00 ENP   3,000.00 6,000.00     August     REG 3,000.00 ENP   3,000.00 6,000.00    

Resource Information

Payroll resource materials In Interchange packet

Four examples of pay and distribution prorations

On July 1, 2009, available on Payroll web site : http://www.finops.umich.edu/payroll/resources/admin/%252Funiversityyearappointmentinformation

Additional proration worksheets