TwoSemester Faculty Appointment Salary Override Calculation Upon Separation

Two-Semester Faculty Appointment Salary Override Calculation Upon Separation

Determine Date of Separation • • • Review academic calendar Determine primary semesters Determine date of separation Determine semester in which last date worked Determine total number of work days for the semester (see Payout Schedule) • Determine total number of work days faculty member completed in semester (see Payout Schedule)

Determine Base Salary • Determine annual base salary • Multiply annual base salary times 50% (to ascertain base salary for one primary semester)

2014 -2015 AY Two-Semester Payoff Schedule Semester Day Last Day Worked Day# Due * Spring Mon 1/12/2015 1 1/73 rd Spring Tue 1/13/2015 2 2/73 rd Spring Wed 1/14/2015 3 3/73 rd Spring Thu 1/15/2015 4 4/73 rd Spring Fri 1/16/2015 5 5/73 rd Spring Mon 1/19/2015 HOLIDAY Spring Tue 1/20/2015 6 6/73 rd Spring Wed 1/21/2015 7 7/73 rd Spring Thu 1/22/2015 8 8/73 rd Spring Fri 1/23/2015 9 9/73 rd Spring Mon 1/26/2015 10 10/73 rd

Calculate Faculty Salary Override • Divide annual base salary for one semester by total number of work days in that semester (see Payout Schedule) to determine daily rate • Multiply daily rate times number of work days completed by faculty member • Determine annual base salary received via paycheck(s) paid during semester and to date for the AY

Calculate Faculty Salary Override (cont’d) • Subtract annual base salary paid to date in semester from total annual base salary for the semester plus any salary due from prior semester, if any • The result is the amount of the faculty salary override

Sample Calculation Example 1 • • • Primary semesters – Fall and Spring Date of Separation – 01/01/2015 AY base salary – $100, 000. 76 work days – fall semester 76 days worked – fall semester

Sample Calculation Example 1(cont’d) 1. 2. 3. 4. 5. $100, 000. *. 50 = $50, 000. / 76 days = $657. 89 per day $657. 89 * 76 days worked = $50, 000. $100, 000. / 12 mos = $8, 333. 33 per month $8, 333. 33 * 3 mos = $24, 999. 99 paid Sept. through Nov.

Sample Calculation Example 1(cont’d) 6. 7. Fall semester total salary due = $50, 000. – $ 24, 999. 99 (salary paid Sept. through Nov. ) = $25, 000. 01 (salary due for fall semester) $25, 000. 01 faculty salary override in Dec.

Sample Calculation Example 2 • • • Primary semesters – Fall and Spring Date of Separation – 02/27/2015 AY base salary – $100, 000. 73 work days – spring semester 34 days worked – spring semester

Sample Calculation Example 2 (cont’d) 1. 2. 3. 4. $100, 000. *. 50 = $50, 000. / 73 days = $684. 93 per day $684. 93 * 34 days worked = $23, 287. 62 $100, 000. / 12 mos. = $8, 333. 33 per month 6. $8, 333. 33 * 5 mos. = $41, 666. 67 paid Sept. through Jan.

Sample Calculation Example 2 (cont’d) 6. Fall semester total salary due = $50, 000. – $41, 666. 67 (salary paid Sept. through Jan. ) = $8, 333. 33 (salary due for fall semester) 7. $8, 333. 33 + $23, 287. 62 = $32, 620. 95 faculty salary override

Process PCR • Process PCR for the amount of the faculty salary override • HR will enter amount listed on PCR • Amount will appear on next paycheck

Taxability of Faculty Salary Override • Faculty salary override will be taxed the same as any regular paycheck based on place of residence and work location

12 -Month Faculty Appointment • There is no need to calculate a faculty salary override for a faculty member on a 12 -month appointment since their salary is earned and paid in the same month