Purpose

1.1

To provide guidance regarding appropriate payments to employees outside of their base compensation and associated wage code usage. 

Scope

2.1

These procedures are applicable to all UNMC staff and faculty.

Basis of the Procedures

3.1

Authorities and Administration 

4.1

Business units are responsible for the funding and approval of payments in accordance with applicable University policy and procedures.  Human Resources (HR), the Financial Compliance Office, Financial Controller along with Payroll, and Academic Affairs are responsible for policy/procedure development and monitoring. 

Effective July 1, 2009 all payments for wage code types 4401, 1404, 1419, and 1420 will be submitted to HR Records for review and entry into SAP by either HR Records or Payroll in accordance with the payroll schedule.  The additional payment form located in Sapphire outlines which payments must be submitted to Human Resources and which ones can be entered by the department. 

Procedures

5.1

Summary:

The following sections outline the correct administration of additional payments to include the appropriate SAP coding, documentation, and approval process to be used for each type of payment.  For questions regarding payments please contact HR Records (9-4391) or Payroll (9-5875). 

Human Resources, the Financial Compliance Office, and the Financial Controller will conduct periodic monitoring of payments to ensure UNMC is in compliance with University policy and procedure as well as state and federal regulations. 

5.2

4401 Additional Compensation (one-time pay)

Compensation paid to an employee on a temporary one-time basis outside of his/her regular base wage/salary for taking on additional responsibilities.  This type of payment can be done for an exempt monthly, or nonexempt biweekly, paid employee and is included as part of "institutional base salary" (for further information regarding "institutional base salary" relative to federal awards, see UNMC policy 6102). 

5.2.1

4401 Reasons:

Following are appropriate reasons for utilizing the 4401 additional payment wage code.   

·         Temporary additional duties outside the scope of the current position.

·         Compensation for serving as a standardized patient

·         Exempt monthly paid employees may be eligible for an additional payment to reward for extra effort in a situation where they are required to work an inordinate amount of extra time.  It is important to note that hours of work must not be tracked and payment should not be based on hours worked in order to protect the exemption status of the position. 

Additionally, 4401 payments should not be used for the following reasons:

·         Pay in lieu of a base wage increase (see section 5.4 for correct coding)

·         Expense reimbursement that should be paid through accounts payable

·         Performance rewards that should be paid as 0603 Outstanding Performance Stipend, 0620 Distinguished Scientist Award, or 0601 Awards

·         Additional teaching assignments that should be paid as a 4404 recurring payment, even if only for one month. 

5.2.2

4401 SAP Data Entry:

Payments can only be entered by HR Records or Payroll on Info Type 0015 with a cost object and no entry on cost distribution screen 9027.

5.2.3

4401 Additional Compensation Payments to Nonexempt Biweekly Paid Employees:

1.     If a nonexempt biweekly paid employee is performing additional duties that are comparable in scope of work to his/her primary position and this causes the employee to work more than 40 hours in a workweek (or, in accordance with an approved 8/80 schedule), he/she must be paid overtime, or compensatory time, of at least one and one-half his/her hourly rate. 

a.     If the additional duties are within his/her primary department, the time should not be paid as an additional payment, but should be entered into SAP using the normal time entry procedure.

b.    If the additional duties are outside his/her primary department and the employee does not have a secondary appointment, time records must be maintained (but not entered into SAP) and a one-time payment should be processed ensuring that any overtime is accounted for accordingly.

2.    If a nonexempt biweekly paid employee is performing additional duties that are not comparable in scope of work as his/her primary position on an infrequent or sporadic basis, a one-time payment may be processed.  An overtime calculation does not need to be taken into account if the additional duties cause the employee to work more than 40 hours in a workweek. 

5.3

1404 Overload (recurring payment):

Compensation paid to an employee on a recurring basis outside of his/her regular base salary for additional duties that are outside of the employee's regular full-time job.  This type of payment is limited to 20% of an employee's annual salary – to be in compliance with Executive Memorandum #19 and is only available to exempt monthly paid employees.  1404 payments must have a stated end date.  This type of payment is not included as part of "institutional base salary" (for further information regarding "institutional base salary" relative to federal awards, see UNMC policy 6102

5.3.1

1404 Reasons:

1404 payments are to be used for additional duties outside the scope of an employee's current position such as the following:   

·         Taking on additional teaching assignments in addition to the primary contract.

·         Serving in an interim capacity at a level above the employee's current classification.  For example, a senior staff employee filling in for a vacant management position until the position is filled.

·         Taking on additional duties in a different department/campus while maintaining a regular full-time appointment.

Additionally, 1404 payments should not be used for the following reasons:

·         On-going additional appointments that should be paid as 1010 Administrative Stipend

·         One-time payments that should be paid as 4401 Additional Compensation

·         Pay in lieu of a base wage increase (see section 5.4 for correct coding)

5.3.2

1404 SAP Data Entry:

Payments can only be entered by HR Records or Payroll on Info Type 0014 without a cost object and must be entered on cost distribution screen 9027.

5.3.3

1404 Compliance with OMB Circular A-21:

OMB Circular A-21.  In order to charge overload expense to a federally sponsored project, the consulting agreement must be approved in advance by the sponsoring agency and meet the criteria as follows, per J.10.d.(1):

Charges for work performed on sponsored agreements during all or any portion of such period are allowable at the base salary rate. In no event will charges to sponsored agreements, irrespective of the basis of computation, exceed the proportionate share of the base salary for that period. This principle applies to all members of the faculty at an institution.

Since intra university consulting is assumed to be undertaken as a university obligation requiring no compensation in addition to full time base salary, the principle also applies to faculty members who function as consultants or otherwise contribute to a sponsored agreement conducted by another faculty member of the same institution.

However, in unusual cases where consultation is across departmental lines or involves a separate or remote operation, and the work performed by the consultant is in addition to his regular departmental load, any charges for such work representing extra compensation above the base salary are allowable provided that such consulting arrangements are specifically provided for in the agreement or approved in writing by the sponsoring agency.

Please direct questions regarding this regulation to the Financial Compliance Office (9-5838).

5.4

1420 July 1 In Lieu Payment Stipend:

Compensation paid to a non-academic employee on a one-time or recurring basis outside of his/her regular base wage/salary in accordance with UNMC's annual July 1 wage adjustment guidelines for stipends in lieu of a base wage/salary increase.  This type of payment can be done for an exempt monthly or nonexempt biweekly paid employee. 

Recurring payments can only be made to exempt monthly paid employees and are included as part of "institutional base salary" with a stated end date. 

One-time payments can be made to either exempt monthly, or nonexempt biweekly, paid employees and are not included as part of "institutional base salary". 

5.4.1

1420  SAP Data Entry:

If the payment is to be made on a recurring basis, it can only be entered by HR Records or Payroll on Info Type 0014 without a cost object and must not be entered on cost distribution screen 9027.

If the payment is to be made on a one-time basis, it can only be entered by HR Records or Payroll on Info Type 0015 without a cost object and must not be entered on cost distribution screen 9027.

5.5

1419 New Faculty/Retention Stipend (new code):

New Faculty/Retention stipends allow for short-term (1-year or less) payments to faculty as consideration for work done during the stated period of time in order to allow the University to react to market fluctuations that could negatively affect the long-term mission of the institution.  Stipends may be replaced by a UNMC-P contract, Supplemental Compensation, or an increase to base salary.  1419 payments must have a stated end date and are included in "institutional base salary". 

5.5.1

1419 Reasons:

Following are appropriate reasons for utilizing the 1419 New Faculty/Retention payment wage code.   

·         Pay in addition to the base salary to compensate a new faculty member while establishing patients in the clinic.  If applicable, may be replaced by UNMC-P contract.

·         Pay in addition to the base salary to a new faculty member while establishing/transferring grant money.  If applicable, may be replaced with Supplemental Compensation or annual salary increase based on performance.

·         Temporary additional pay to compensate exceptional faculty to retain them at UNMC due to market demands.  May be replaced by annual salary increase based on performance.

Additionally, 1419 New Faculty/Retention Stipends payments should not be used for the following reasons:

·         Performance rewards that should be paid as 0620 Distinguished Scientist Award, or 0601 Awards

·         Additional appointments that should be paid as a 1010 Administrative Stipend

·         Additional duties that should be paid as 1404 Overload

5.5.2

1419 SAP Data Entry:

Payments can only be entered by HR Records or Payroll on Info Type 0014 without a cost object and must be entered on cost distribution screen 9027.

5.6

1010 Administrative Stipend:

Administrative Stipends are considered to be a fixed annual amount of additional compensation (beyond the individual's base salary) for additional assigned administrative appointments.  They can be done for academic or managerial/professional positions.  Stipends may be defined for a period of time (with an end date) or may be indefinite (open-ended).  1010 stipends are included in "institutional base salary".  (While this wage code represents an on-going commitment that is part of base pay rather than added on separately such as the other wage codes in these procedures, it has been included to clarify its use relative to the other wage codes noted.)

Academic Appointments

Stipends are established with the creation of a Special Academic Administrative Appointment and no FTE.   An appointment letter and Board of Regents notification is required.  When administering an annual salary increase, calculate the increase on the total salary (base and stipend) and add to the base salary only.  The original value of the stipend is retained.

Managerial/Professional Appointments

Managerial/Professional Administrative Stipends apply only to exempt managerial/professional positions.  Documentation supporting the stipend must be retained by the department.  Stipends must be approved by the head of the business unit.  When administering an annual salary increase, calculate the increase on the total salary (base and stipend) and add to the base salary and stipend.  The value of the stipend increases.

5.6.1

1010 Reasons:

Following are appropriate reasons for utilizing the 1010 Administrative Stipend payment wage code.   

·         Additional assigned administrative appointments outside the scope of the current position and base salary either for a defined period of time or indefinitely.

1010 Administrative Stipend payments should not be used for the following reasons:

·         Pay in lieu of a base wage increase (see section 5.4 for correct coding).

·         Performance rewards that should be paid as 0620 Distinguished Scientist Award, 0601 Awards or 0605 Outstanding Performance Stipends.

·         Additional duties that should be paid as a 4401 or 1404. 

5.6.2

1010 SAP Data Entry:

Departments may enter 1010 stipends themselves using a salary change action.  For academic positions, the appointment associated with the stipend must be entered on the 9001 appointment screen.  The stipend must be entered on the 0008 Basic Pay and 9027 Cost Distribution screens.  (Utilize PAF form instead of additional payment form for documentation)

5.7

Payment Documentation:

The additional payment form can be found in Sapphire under UNMC Business Forms/Human Resources/Personnel Administration. The form is titled as follows:

Authorization for Additional/Recurring Payments

All forms must be fully completed, and contain the necessary signatures prior to entry into SAP. 

Forms submitted to HR Records or Payroll for review and processing will be retained in the HR Records personnel file. 

Forms authorizing payments that are entered by departments must be retained in the department personnel file.  Departments are responsible for loading payment document for faculty into ADIS.

In order to charge overload expense to a federally sponsored project (UNMC WBS 34-35, and any 36 that is a federal subcontract / A-133), the department must submit documentation showing sponsor pre-approval along with the signed authorization for payment form. 

6.1