Contract Pay

as of May 2011

Why switch to contract pay?

• Systematically allows for a contract amount to be paid out over the term of the contract.

• Will correct the current issue with faculty pay not aligning with days worked.

Whose decision was it?

• Final decision was made by Provost’s Office.

• Financial Services was involved in discussions.

• Office of Knowledge Enterprise Development also had an interest in aligning pay periods with contract.

Who is communicating with faculty?

• Provost’s Office• Colleges/schools• Payroll, if contacted• Benefits, if contacted

From: Mark SearleSent: Friday, April 01, 2011 5:20 PMTo: DL.WG.PROVOST.AdminFaculty; DL.WG.PROVOST.Contract; DL.WG.PROVOST.TenTrk; DL.WG.PROVOST.APCc: Elizabeth Capaldi; Sheila Ainlay; Kevin Salcido (HR); Terri Deasey; DL.WG.DEANS; Carol PeplowSubject: Message to faculty

Colleagues

The University implemented PeopleSoft several years ago to address a critical need to replace an old and failing HR/Payroll system that could no longer be supported. Given the short time we had to implement the new system, some of our preferred practices could not be implemented at the time. One such practice was aligning the salary payments to faculty and academic professionals who are on nine month appointments and paid over nine months with the actual academic year appointment period (August 16th to May 15th). We are now in a position to implement this change. So, beginning with the 2011-12 academic year, those who are on 9 month appointments and paid over 9 months will be paid based on the period of the appointment between August 16, 2011 and May 15, 2012. That means that if the academic year begins in the middle of a pay period, the individual will receive that portion of their pay for the period worked in that pay period. Similarly, at the end of the academic year, should it end in the middle of a pay period, then the salary paid would be proportionate to the time worked in the pay period. This does not change total pay in any way – it ensures you receive all of the nine month salary for the associated nine month appointment period. If you receive additional funds from external or internal sources for summer pay, then those will be paid during the pay periods between May 16 and August 15. Please note that this will have no effect on the salary payments for faculty and academic professionals who are paid their nine month salary over 12 months.

Mark S. SearleVice President for Academic PersonnelArizona State University300 E. University Ave, Suite 420Tempe, AZ 85287-7805Phone: 480-965-7405Fax: 480-965-0785

Why change now?

• Misalignment of pay issue needs to be resolved.

• PeopleSoft upgrade(s) beginning in fall 2011 so change needs to happen now or be delayed for up to 2 years.

When does it happen?

• Fall 2011

• Summer contracts should be processed in the same way as always.

Whose pay check is impacted?

• ACD faculty – 9 month faculty.• Grad students.• Other academic professionals on

academic year appointments and not paid over 12 months.

Who else is impacted?• Colleges and schools business

offices.• Payroll/Financial Services.• Benefits/Human Resources.• Provost Office.• Business Technology Services and

UTO.

What is the core change to faculty’s paychecks?

• The first and last pay paychecks of the academic year will be prorated based on the number of workdays in the pay period.

• August 26, 2011 pay date – 4 days• Sept 9, 2011 – May 8, 2012 pay days –

10 days (19 pp)• June 1, 2012 pay day – 2 days• 196 days vs 195 days – year to year

change

What does this mean as far as net pay?

• Net pay varies greatly from person to person.

• Realistically many faculty may have small dollar or ‘zero’ checks for the first and last pay periods once taxes, retirement and insurance deductions are withheld.

Net pay, continued

• If the pay isn’t enough to cover all deductions, such as medical insurance – double deductions may occur the next pay check.

Who is setting up the contracts?

• Automatic renewals will be processed for all positions in the ACD paygroup except faculty associates and academic associates.

• On-line renewal process for all positions not renewed automatically.

• Newly hired faculty or grads will be set up by departments using the PTR.

How will a contract be changed?

• Through the PTR process.• System will handle retroactive

payments, if a contract is already established.

• Payroll will handle retroactive payments if a contract is set up late once a PAR has been submitted.

Can faculty have multiple active contracts?

• Yes, but each active contract would need its own emp record.

This didn’t work before, why try again?

• PS contract pay was developed for this purpose.

• No indication that the core contract pay function didn’t work last time.

• Control was lost when adjustments were being processed.

• Payroll will have dedicated contract pay staff during implementation.

What resources will be available for college

business offices?• Website with FAQ’s or general

information.• Academic pay calculator.• Business Process Guides.• What else can we do to help?

Academic Pay Calculator

Who is involved in the project?

• Business Technology Services/Terri’s group

• Financial Services – Payroll and Accounting

• Human Resources – Benefits• University Technology Services

What has been done to date?

• Received final project approval from Provost’s Office.

• Project plan developed.• Specifications written for PS

changes needed.• Testing of contract pay processes.

What is next?

• Enhancements to the PTR to allow dates outside of beginning of pay period

• Development of renewal processes• Development of web page for

communication.• Testing, Testing, Testing.