June 7, 2010 Payroll Rep Meeting Presentation

Report
Payroll
Representatives
Meeting
June 7, 2010
6/7/2010
1
Agenda for Today
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6/7/2010
What is Driving Change at UMB?
Salary Directives
Hiring Freeze Guidelines
Additional Compensation Processing
Future Planned Changes
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What is Driving Change at UMB?
• Unfavorable Audit Results by the Office of Legislative Audits
• Findings of Payments Made to Employees With No Policy to
Support the Payment
• UMB Required by Maryland Legislation to submit information
of additional compensation paid to employees during FY2010,
including value of the payment, purpose of payment and base
salary of employee earning the payment
6/7/2010
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What is Driving Change at UMB?
• UMB required to identify all types of earnings paid during
FY2010 (except for regular earnings and overtime).
– Leave payouts for terminated employees
– Shift differential and on-call non-exempt payments
– Payments to employees working outside of the U.S.
– Payments for adjunct faculty pay
– Regular earnings for employees who are exempt from FICA
withholding
– New codes and processes for Administrative Supplements
and Faculty Incentive Plans (training has already been done)
– Supplemental Payments
6/7/2010
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What Does This Mean For UMB?
It’s a New World!
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Campus Commitment to Compliance
More Training
New Codes and Processes
More Documentation
More Tracking
More Reporting
– CUMULATIVE taxable compensation exceeding 10%
reported to USM bi-weekly for Faculty and Staff
throughout FY2011
• Includes Supplemental Payments and Retention Increases
• Excludes Summer Work for 10 month faculty, Teaching Overload,
On-Call pay and Clinical Overload.
6/7/2010
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FY2011 Hiring Freeze
Exception Form
Hiring Freeze –
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Continues throughout FY2011
Same Guidelines
Found at
http://www.hr.umaryland.edu/
6/7/2010
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FY2011 Salary Directives
Highlights
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Applies to All Faculty and Staff on Regular, Contingent Category I and Contingent
Category II Status – REGARDLESS OF FUND SOURCE
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No COLA, no merit increases, and no University bonuses for faculty and staff in FY2011
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Salary increases are allowable for promotions and re-evaluations for faculty and staff
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Opportunities for faculty retention adjustments
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Graduate assistants, fellows, post-doctoral and student employees are excluded from
the FY2011 salary directives
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No salary increases available for contract renewals for contract faculty and contingent
staff employees
http://www.hr.umaryland.edu/compensation/meritcola.htm
6/7/2010
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FY2011 Salary Directives
FACULTY RETENTION
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Should be used Judiciously - USM expects that institutions will not send faculty retention requests for
more than 5% of their faculty population.
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Intended for Faculty being actively recruited by other institutions or where there is compelling evidence a preemptive action is necessary for retention.
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Must have one of the following:
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Written offer to the Faculty member from another institution
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Written evidence, including email or other correspondence, that the faculty member is being recruited seriously by
another institution, or a search firm for an institution, at a compensation level likely to exceed the faculty member’s
current compensation
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Documentation that the department has experienced retention problems in recent years that likely will result in the
loss of a valuable faculty member if a retention adjustment is not made
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Other strong evidence that the institution is at imminent risk of losing a faculty member in the absence of a retention
adjustment
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Itemized detail of retention adjustments in excess of 10% with explanation must be reported to USM
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Retention recommendations with supporting documentation should be forwarded to Dr. Malinda Orlin for review.
Dr. Orlin will provide her recommendations to the President
6/7/2010
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FY2011 Faculty Retention Form
For 7/1/10 Effective Date:
• Retention requests due to Dr. Orlin by
6/11/10
• Approved Retention Adjustments on EA
Forms Due 6/17/10.
• Please allow time for processing
• Faculty Retention Adjustments must be
reported to the Chancellor
Process will continue as stated until further
notice
http://www.hr.umaryland.edu/main/hrforms.htm
6/7/2010
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Legislative Audit Requirements
Important Recent Faculty Policies
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II - 1.03(A) - UMB Policy on Concurrent Faculty and Administrative Appointments
 Administrative Supplements now require separate appointment letter
containing 5 elements identified in this policy
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II - 1.21(B) - UMB Policy on Faculty Supplemental Pay for Summer Work
 Provides guidance on summer work for 10 month faculty
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II - 1.21(C) - UMB Policy Concerning Supplemental Payments and Salary
Adjustments for Faculty
 Identifies circumstances for which supplemental pay or salary adjustments may
be paid to faculty.
http://cf.umaryland.edu/hrpolicies/
6/7/2010
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Legislative Audit Requirements
For All Additional Compensation
• Identify
• Track
• Report
6/7/2010
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Legislative Audit Requirements
Additional Compensation
Additional Compensation is defined as all
earnings that do not fall into the categories of
regular earnings or overtime earnings
6/7/2010
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Legislative Audit Requirements
ADDITIONAL COMPENSATION EXAMPLES
o
o
o
o
o
6/7/2010
Leave Payouts for terminated employees
Shift Differential
Adjunct Faculty Pay for Existing UMB Employees
Allowances for Employees Working Overseas
Supplemental Payments
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Legislative Audit Requirements
Our Steps Along The Way…
o
Met with School and Administrative
Department leadership to determine
types of payments made to employees
o
Ensured that each of these payment types has a
corresponding Earnings Code
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Ensured that all earnings codes have a
corresponding UMB policy to support their
payment
6/7/2010
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Legislative Audit Requirements
NEW SUPPLEMENTAL PAY CATEGORIES AND EARNINGS CODES
FOR FACULTY
Description
Earnings Code
UMB Policy
Teaching Overload
TOV
UMB II-1.25 (A )
Professional Consulting*
CON
UMB II-3.10 (A )
Continuing Education
CED
UMB II-1.21 (C )
Lump Sum Grant (MHEC)
GLS
UMB II-1.21 (C )
Committee Supplement
COM
UMB II-1.03 (A )
Secondary Staff Employment
SEC
UMB II-1.21 (C )
Secondary Faculty Appointment,
Affiliate
SEA
UMB II-1.21 (C )
*Professional Consulting cannot be grant funded
http://cf.umaryland.edu/hrpolicies/
6/7/2010
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Legislative Audit Requirements
NEW SUPPLEMENTAL PAY CATEGORIES AND EARNINGS
CODES FOR EXEMPT STAFF
Description
Earnings Code
UMB Policy
Secondary Staff
Employment
SEC
UMB VII-9.11 (A )
Secondary Adjunct Faculty
Appointment
SEJ
UMB VII-9.11 (A )
http://cf.umaryland.edu/hrpolicies/
6/7/2010
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Legislative Audit Requirements
SUPPLEMENTAL PAYMENT CHANGES FOR
FACULTY AND STAFF EMPLOYEES
o
Supplemental Payments – Effective June 20, 2010, the
Earnings Code SUP will no longer be used
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Any payments to existing UMB employees using
Supplemental Pay must now be coded with the
appropriate Earnings Code that represents the work to
be performed.
o
Internal processes within your school/department will
not change
6/7/2010
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Legislative Audit Requirements
NEW FORMS REFLECTING NEW EARNINGS CODES:
o Supplemental Compensation for Faculty
o Increased Responsibilities and Supplemental
Payment Request for Exempt Staff
Both new forms allow you to specify an Earnings Code.
To be used for all requests as of the beginning of Pay
Period 11-01 and forward
6/7/2010
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Legislative Audit Requirements
ALL
Additional Compensation Components with Codes
Additional Compensation Component
Earnings Code
Summer Work (10 month faculty)
SUM
Teaching Overload
TOV
Professional Consulting (Cannot be Grant Funded)
CON
Honorarium
HON
Committee Supplement
COM
Continuing Education
CED
Clinical Overload
CPP
Lump Sum Grant (MHEC)
GLS
Regular/C2 Staff with Secondary Employment
SEC
Regular/C2 Staff with Adjunct Faculty Appointment
SEJ
Regular Faculty with Secondary Staff Employment
SEC
Regular Faculty with Secondary Faculty Affiliate Appointment
SEA
6/7/2010
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SUPPLEMENTAL
COMPENSATION
REQUEST FOR
FACULTY
6/7/2010
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Procedures for Supplemental Compensation Request
for Faculty
Relates to UMB Policy II-1.21 (C ) effective 12/09; Procedure Date 7/1/2010
1.
Supplemental Compensation Request for Regular Faculty ("Request") form must be fully
approved as indicated by the “Request Type”.
Requests for Professional Consulting and Non-MHEC Lump Sum Grants, secondary staff
employment (other than administrative appointments) and secondary adjunct
appointments must be pre-approved prior to commencement of increased responsibilities.
A Request should include a fully completed form and all required attachments:
To process Approval Request:
2.
3.
4.
a)
Pre-approval Required - If the Request requires pre-approval, it should be submitted to FS-Payroll. No Payroll Adjustment
Form will be needed for the pre-approval. FS-Payroll will forward the Request to the President or his designee for approval.
FS-Payroll will forward all approved and denied Requests back to the paying department. Upon receipt of approved
Request, the paying department should inform the faculty member that he/she is authorized to perform the supplemental
work as described in the Request.
Pre-approval NOT Required - If the Request does not require pre-approval, it can be submitted to FS-Payroll with a Payroll
Adjustment Form for processing, provided the Request has all of the appropriate approval signatures. FS-Payroll will
forward all Requests to the President or his designee for approval. FS-Payroll will forward denied Requests to the paying
department. Payroll will process all approved Requests.
b)
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To process Payment Request, complete a Payroll Adjustment Form to make payments
authorized by an approved Request. Approved Payroll Adjustment Forms should be sent to
FS-Payroll with a copy of the approved Request.
Payroll will review requests for completeness before processing. Payment Requests may be
denied if the documentation submitted does not match the information noted on the
Request.
Each academic or administrative paying department must maintain accurate records of
approval and payments for increased responsibilities payable by supplemental
compensation. FS-Payroll will image all approved Requests.
All USM and UMB policies related to the additional duties apply, as indicated by the
Earnings Code.
6/7/2010
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Legislative Audit Requirements
Completing New Supplemental Compensation Request
Forms for FACULTY
• Procedures have been developed for form
• When request form is printed, procedure will
print along with request form.
• Pre-approval required before work begins
for:
– Faculty Professional Consulting Assignments
– Any Lump Sum Grant Other than MHEC
– Any Faculty Request WITHOUT an existing
Earnings Code
6/7/2010
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Legislative Audit Requirements
Completing New Supplemental Compensation Request Forms
for FACULTY
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Review policy related to Earnings Code
Appropriate Earnings Code must be selected
Provide Start and End Dates
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Attach a letter describing the increased
responsibilities, including where work is to be
performed.
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Indicate Single Task or Multiple Tasks
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Obtain Employee, Paying and Home Department
Signatures.
Submit to FS-Payroll with Payroll Adjustment Form
FS-Payroll obtains approval of President/Designee and
processes request.
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Denied requests are returned
to the Department
6/7/2010
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Legislative Audit Requirements
When to Use Faculty Supplemental
Compensation Request Forms
• Used same as today except Pre-Approval required for
Professional Consulting, Non-MHEC Lump Sum
Grants, and Requests without existing Earnings Code
• Will also be used to pay existing faculty performing
secondary Adjunct or Staff jobs
6/7/2010
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INCREASED
RESPONSIBILITIES AND
SUPPLEMENTAL
COMPENSATION REQUEST
FOR EXEMPT STAFF
Form Revised
Same Pre-Approval Process
as Required Effective
6/29/09
6/7/2010
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Procedures for Increased Responsibilities and
Supplemental Compensation Request for Exempt Staff
Relates to UMB Policy VII-9.11(A) effective 6/29/09; Procedure Revision Date 7/1/2010 (Replaces Procedure Dated 6/29/09)
1.
An Increased Responsibilities and Supplemental Compensation Request ("Request") form must be
fully approved by UMB prior to commencement of increased responsibilities.
2. A Request should include the fully completed form and all required documents.
3. Request forms should be submitted to HRS-Compensation for review.
4. HRS-Compensation will forward Requests to the President or his designee for approval.
5. HRS-Compensation will return each approved or denied Request to the paying administrative or
academic department.
6. Upon receipt of an approved Request, the paying department of the affected employee should
inform the employee that he/she is authorized to perform the supplemental work as described in
the Request and send an approved copy to the employee’s home department.
7. Complete a Payroll Adjustment Form to make payments authorized by an approved Request.
Approved Payroll Adjustment Forms should be sent to FS-Payroll with a copy of the approved
Request.
8. Each academic or administrative paying department must maintain accurate records of approval
and payment for increased responsibilities payable by supplemental compensation. FS-Payroll will
image all approved Requests.
9. Requests that have not been fully approved prior to commencement of increased responsibilities
will not be approved. Exceptions may be made only for emergency staffing issues and as approved
in advance by the Dean/VP and HRS-Compensation
10. All USM and UMB policies related to the additional duties apply.
6/7/2010
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Legislative Audit Requirements
Completing New Increased Responsibilities and Supplemental
Compensation Request for Exempt Staff
What is not changing….
• When request form is printed,
procedure will print along
with request form
• Pre-approval required before
work begins
• Authorized signatures are the
same
6/7/2010
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Legislative Audit Requirements
Completing New Increased Responsibilities and
Supplemental Compensation Request for Exempt Staff
What is different…
• Appropriate Earnings Code must be
selected
• Provide Start and End Dates
• Attach a letter describing the
increased responsibilities, including
where work is to be performed
• Indicate Single Task/Multiple Tasks
6/7/2010
Submit requests approved for payment to FSPayroll with Payroll Adjustment Form
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Payroll Adjustment Form Change
 Revised Payroll
Adjustment Form
 Revised Form Includes
New Earnings Codes
 Appropriate Earnings Code
Must Be Selected
Consistent with Approved
Documentation
 Available Now
 Old Forms Will Not Be
Accepted After Pay Period
10-26
6/7/2010
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Upcoming Changes for FY2011
 Contingent Category I Form Revised for
Faculty and Staff
 Special Pay Form Revised for Faculty and Staff
 Contingent Category II Form and Chart
Upgraded
 Training to be held later in June/early July
6/7/2010
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Questions?
6/7/2010
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