1. Summer Payroll Review April 2014

2. Payroll Services 2 Today’s Discussion Summer Session Calendar Review – Linda Tripp Summer Session Process Review – Linda Tripp  Key Dates  Summer Calculator and PA Form Examples – Cindy Konyk  FY Grads on Leave for Summer Cost Distribution – Patty Whaley/Anne Hager References/Links

3. Payroll Services 3 Purdue University 2014 Summer Employment Calendar West Lafayette

4. Payroll Services 4 Payroll Calendar Notes Academic year staff who work during the summer will receive summer pay on the last working day of the month. Summer pay will be included in regular pay for May and August, if applicable. May and August must have 22 days. To pay 1/18th of the annual salary in May and August, the OnePurdue/ SAP system pays 11 days out of 22 days (exactly 1/2 of monthly pay) for academic year staff. The period end date in May and August, the period start date in June and July, and the number of days in June and July may be adjusted to accommodate 22 days in May and August.

5. Payroll Services 5 Key Date Reminders – Spring/Summer 2014 Remember, the AY contract calendar and AY pay calendar are not always the same; therefore effective start/end dates may be different than actual start/end dates. The AY Calendar for the Spring Semester 2014 ends 5/18/14 (WL). For Spring AY separations, the effective date should be 5/19/14. ZZAY absences will be populated for 5/16/14 so that AY employees will receive pay for 11/22 days.

6. Payroll Services 6 Key Dates – Spring/Summer 2014

7. Payroll Services 7 Key Dates – Summer 2014

8. Payroll Services 8 Key Dates – Summer 2013

9. Payroll Services 9 Key Dates – Summer/Fall 2014

10. Payroll Services 10 Summer Session Graduate Appointments – Reminders for 2014 AY position in Spring to FY position in Summer (effective 5/19/14; 1st possible employment date after the academic year ends – Spring Graduation). A new PERNR is created – position with employee subgroup 12 month FY exempt. DO NOT TRANSFER. Complete a PA form to Add Additional Appointment (12 month FY exempt). Cost distribution will be entered separately for each position with the applicable effective dates, therefore charging will be accurate. PAR’s will be accurate for each appointment. Grad reappointment process can be used for AY position for fall. NOTE: If grad student employee does not return in the Fall, 2 PA forms are required (one to end additional and one to separate).

11. Payroll Services 11 Summer Session Graduate Appointments – Reminders for 2014 FY position in Spring to AY position in Summer (effective 5/19/14; 1st possible employment date after the academic year ends – Spring Graduation). A new PERNR is created – position with employee subgroup 9 month AY exempt. DO NOT TRANSFER. Complete a PA form to “Add Additional Appointment” (9 month AY exempt). Complete a Summer Pay Calculator. Complete a PA form to “End Additional Appointment” (12 month FY exempt) – to stop pay. When submitting more than one payroll form, complete “page ___ of ___ pages” on each form. Please STAPLE documents together!! Do not use paperclips.

12. Payroll Services 12 NOTE: If you know a graduate student will not be returning in the Fall, prepare a PA form to separate now. Only active appointments will come forward on the grad reappointment list. Grid for Graduate Student 2014 Summer Appointments Situation PA Form Beginning of Summer Summer Pay Calculator End Add’l or Separation PA Form at End of Summer Pay AreaResult/Comments 9 mo. AY Graduate Student New Hire Example #1 X Appointment and base pay must be established before summer pay can be processed X 5/19/14 is first available day of summer session If appointment ends –Yes; otherwise, will come forward on reappointment list AY Effective date of AY New Hire is 5/19/14. 9 mo AY Graduate Student works in the same org unit, in the same position for summer. Example #2 n/a X 5/19/14 is first available day of summer session If appointment ends – Yes, otherwise, will come forward on reappointment list Pay Area will not change for summer 9 mo. AY Graduate Student works in a different org unit for summer. Example #3 n/a X 5/19/14 is first available day of summer session n/a Pay Area will not change for summer Business Office staff from both org units will determine the cost distribution entry. 9 mo. AY Graduate Student changes to 12 mo. FY Graduate Student during summer. Example #4 Add Additional Appointment – 12 mo. FY 5/19/14 if applicable n/a If either appt. ends – Yes; otherwise, both appts will come forward on reappointment list Pay Area will not change for summer AY grad appt. will pay through 5/18/14 – AY commitment. Unpaid absences will be populated beginning 5/16/14- 8/14/14. 12 mo. FY Graduate Student changes to 9 mo. AY Graduate Student during the summer. Example #5 Add Additional Appointment – 9 mo. AY End Additional Appointment – 12 mo. FY to stop pay X 5/19/14 is first available day of summer session If appointment ends – Yes, otherwise, will come forward on reappointment list Pay Area will not change for summer PA form effective 5/19/14 needed to set-up AY appointment to pay summer salary. A 2 nd PA form is needed to stop pay on 12 mo. FY appointment. 9 mo. AY Graduate Teaching Assistant (TA) changes to 9 mo. AY Graduate Research Assistant (RA) during the summer or vice versa Example #6 Add Additional Appointment – 9 mo. AY X 5/19/14 is first available day of summer session If appointment ends – Yes, otherwise, will come forward on reappointment list AY Effective date of AY Add Additional Appt. is 5/19/14.

13. Payroll Services 13 2014 Summer Pay Calculator

14. Payroll Services 14 2014 Summer Pay Calculator Reminder: Date of Origin = last day worked in pay period (departments to choose date from drop down)  Rate for calculating summer pay is 2.778% of annual salary per week.  To view summer payments in SAP  To view summer payments, use PA20, info type 15 (Additional Payments), STy 1315, click All button and overview (sun over the mountain).

15. Payroll Services 15 AY Summer Pay Guidelines for Unmerged Faculty Upon the recommendation of the DFA’s, Payroll is providing the following guidelines for processing summer calculators for AY unmerged faculty: Business offices should collaborate to:  Identify what days the unmerged faculty will be working during each summer pay period  Determine and designate which business office will prepare and submit the summer calculators to Payroll

16. Payroll Services 16 Calculators should be submitted using the PERNR associated with the Main Personnel Assignment  Identify the Main Personnel Assignment in IT0712  Use the checked PERNR in the most recent period Follow the appropriate signature delegation process(calcs do not need signed by both orgs) AY Summer Pay Guidelines for Unmerged Faculty Cont. #2

17. Payroll Services 17 Example:  Professor A is 50% in Org Unit #1 (Pernr #1) and 50% in Org Unit #2 (Pernr #2)  Pernr #1 is the Main Personnel Assignment  Both Orgs have worked out the following schedule  May – 100% in Org #1  June – 100% in Org #2  July – 50% in Org #1 and 50% in Org #2  August – 100% in Org #2  Pernr #1 is used on ALL calculators submitted  The designated business office for this faculty member will prepare all the summer calcs. AY Summer Pay Guidelines for Unmerged Faculty Cont. #3

18. Payroll Services 18 Examples 2014 Summer Pay Calculator

19. Payroll Services 19 FY Grads on Leave for Summer Prepare Form 33A (Request for Absence from Campus) covering the unpaid leave period http://www.purdue.edu/hr/xls/33ABSENCE.xls Prepare Leave Action Form (LAF) and provide account information for charging of fringe benefits (University portion) to department specified account(s). Multi- sponsored and voluntary support funds can be used to pay for the fringes, however, Federal, State and Industrial funds are not appropriate. Send Leave Action Form directly to the HR Service Center, FREH (Cindy Stephens). http://www.purdue.edu/hr/xls/LeaveActionForm.xls Refer to BPP: Charging Fringe Benefits for Unpaid Leave of Absence-Interim https://spa.itap.purdue.edu/Business/businessatpurdue/Process%20Library/Charging_of_Fringe_Be nefits_for_Unpaid_Leave_of_Absence.docx Grads will still be in “employment status” but because they aren’t being paid, their insurance fees will accrue. When the grad comes back after the summer is over, the premiums will be deducted from their first paycheck for those fees they accrued over the summer. Refer to the Grad Employment manual for further details. http://www.gradschool.purdue.edu/downloads/Graduate_Student_Employment_Manual.pdf http://www.gradschool.purdue.edu/downloads/Graduate_Student_Employment_Manual.pdf

20. Payroll Services 20 Cost Distribution for Summer 2014 Payroll(s) For AY staff Pay Period #5 cost distribution must be based on dates below: May AY cost distribution is 5/01/14 – 5/15/14 (11 work days) The range of dates for cost distribution for 2014 Summer Session Pay is: 5/16/14 – 8/14/14 May: 5/16/14 – 5/31/14 June: 6/1/14 – 6/30/14 July: 7/01/14– 7/30/14 August: 7/31/14 – 8/14/14 Cost distribution for the 2014-15 academic year (Pay Period #8) will begin on 8/15/14.

21. Payroll Services 21 Cost Distribution Reminders Summer Session Pay is paid as lump sum payments monthly. The cost distribution that is applied to the payment is determined by the date of origin of that payment. You should set the cost distribution to the same value for the entire month.

22. Payroll Services 22 Summer Pay Distribution for AY Employees Summer pay for AY employees is a lump sum payment, and therefore percentages must be figured for the entire month. Example:  PI worked 100% July 1 st – July 15 th on Grant A  PI worked 100% July 16 th – July 30 th on Grant B Because AY employees are paid with lump sum payment each month, the distribution in IT27 at the pay date will be the distribution for the entire payment. Therefore, distribution should be calculated based on effort for the entire month. In this case, the distribution in IT27 should be as follows:  For the period of July 1 st – July 30 th, PI worked 50% on Grant A and 50% on Grant B.

23. Payroll Services 23 Cost Distribution Notes Use the copy button rather than the change button (pencil). Verify that the distribution equals 100%. Do not enter more than 12 lines of distribution. Do not enter a cost center with a real internal order

24. Payroll Services 24 The value of Group Term Life Insurance above $50,000 that is provided to employees from Purdue is subject to Social Security and Medicare taxes. FICA Taxes (Social Security and Medicare) are withheld from an employee’s paycheck based on the cost of the amount of coverage paid by the University with a benefit above $50,000. These taxes are withheld from an employee’s payroll 12 times per year for Monthly staff and 26 time per year for Biweekly staff. If no earnings during a pay period – these taxes are carried forward to the following payroll period. Group Term Life Imputed Income

25. Payroll Services 25 FICA Taxes have an employer match component. No carry-forward – charges will hit whatever accounts are on IT0027 (cost distribution) during that time period, even if no earnings. If no summer payroll added on IT0015 – employee record still runs through payroll. FICA employer charges for Group Term Life Imputed Income still hitting accounts with no earnings. SPS accounts on IT0027 records when no effort expended on projects creates a posting issue of unallowable charges. Current Posting Issues:

26. Payroll Services 26 Business Process Refresher for Summer 2014 Departments review IT0027 records for those AY staff that are not working during summer months – June and July. T-code: ZHR_NOAYSUMMER report was created to help identify staff. Changes only required for staff eligible for life insurance (i.e. grads excluded) If Sponsored Program Accounts are on IT0027 record – must change to home Cost Center and General Fund (21010000) during summer period so imputed income FICA employer charges will hit central pool accounts. If Gift or Auxiliary type fund that normally pays fringe benefit charges – must leave IT0027 record as is and charges will post to these accounts during non work months (normally June and July).

27. Payroll Services 27 Example: 1. Faculty working May and July 2014 on SPS account but not working June or August 2014:  IT0027 should reflect SPS account for May and July pay period dates and home cost center for June pay period dates.  Fannie Faculty – Pernr 10001417 – home cost center Mathematics – North Central 3004018000 07/31/2014 12/31/9999 07/01/2014 07/30/2014 06/01/2014 06/30/2014 05/16/2014 05/31/2014 11/16/2009 05/15/2013

28. Payroll Services 28 Example May 2014 distribution June 2014 distribution 06/01/2014 To 06/30/2014 05/16/2014 To 05/31/2014

29. Payroll Services 29 Example July 2014 distribution August 2012 and beyond distribution 07/01/2014 To 07/30/2014 07/31/2014 To 12/31/9999

30. Payroll Services 30 Example Posting 05/30/2014 06/30/2014 05/01/14 - 06/30/14

31. Payroll Services 31 T-code to identify life insurance eligible staff with no June/July summer earnings ZHR_NOAYSUMMER – pull report by org unit QRC available on the Costing website https://www.purdue.edu/costing/BPM/pdf/QRC __ZHR_NOAYSUMMER_report.pdf https://www.purdue.edu/costing/BPM/pdf/QRC __ZHR_NOAYSUMMER_report.pdf

32. Payroll Services 32 Summer Tips/Reminders Watch for holidays in May and July – EE must be in pay status the day before and the day after the holiday to receive pay for the holiday. Separate calculators for each fiscal year for budgeted staff  Faculty, A/P, Continuing Lecturers, Post Docs, etc. Current salary–always use Full-Time Academic Year Salary Value  If PA20 shows 50.00 CUL and $20,000 annual then full-time annual is $40,000. (i.e. Full-time annual rate = annual rate divided by.CUL ($20,000 /.50 = $40,000) Department Contact (name & phone number) – person to call if questions with forms submitted to Payroll. When submitting more than one payroll form, complete “page ___ of ___ pages” on each form. STAPLE all documents together!! Do not use paperclips.

33. Payroll Services 33 References/Links: Provost Office Summer Session Guidelines: http://www.purdue.edu/provost/documents/Summer%20Session%20Guidelin es%202012.docx Executive Memorandum C-26 (Employment Period for Academic-Year Staff: http://www.purdue.edu/policies/human-resources/c-26.htmlhttp://www.purdue.edu/policies/human-resources/c-26.html Payroll Services Website: http://www.purdue.edu/business/payroll/ http://www.purdue.edu/business/payroll/ Payroll Website: http://www.purdue.edu/business/payroll/PASC/index.html http://www.purdue.edu/business/payroll/PASC/index.html Executive Memorandum C-18 (Compensation Policies for University Staff Members Participating in Continuing Education Activities): http://www.purdue.edu/business/Executive_Memoranda/C/c-18.html http://www.purdue.edu/business/Executive_Memoranda/C/c-18.html Executive Memorandum C-40 (University Policy on Compensation for Summer Intensive Instructional Activities and Non-Continuing Education Overload Activities: http://www.purdue.edu/policies/human-resources/c-40.html

34. Payroll Services 34