contract pay test

IntroPTR ChangesOnline RenewalSearch PageReturnsContract Pay ChangesMultiple ContractsAdditional payLeaves of Absence

Contract Pay


Agenda• Project Overview/Timeline/Contract Life Cycle (visual)• PTR• Online Renewal• Pay Changes• Multiple Contracts• Contract Pay Page• Additional Pay Dashboard• View Employees Pay Check• Taxes• PAR’s• Sick Leave Accruals• Benefits Implications• Resources


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?

• Align pay with contract dates• PeopleSoft upgrade(s) beginning

in fall 2011 so change needs to happen now or be delayed for up to 2 years.


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.• DM/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


Two Main Populations

• Auto Renew– NOA appt type is not NA as defined by

the job code table– Contract row written automatically

• Other employees on contract– Grads, faculty associates– Will need to be renewed taken by the

department via Online Renewal or PTR


PTR Vs. Online Renewal

• PTR– One transaction at a time

• Online Renewal• Ability to Mass Renew several

employees in a department at one time.

Note** Both will need workflow approvals


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 negative 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 is next?

• TIMELINE GOES HERE


PTR Changes

Contract Pay


Splash Page Options

• The Short Work Break options will be removed.


Splash Page Options

• Two Contract Options are being added.

• Renew Contract may be selected for job records with an ACD or GRD paygroup that have contract history.

• Terminate Contract may only be selected for job records that have an active contract.


Main Page Changes


Renew Contract

• The Position field may be left blank if not changing from the current value.

• Begin Date, End Date and Contract Amount fields must all be entered on Renew Contract.

• Begin and End Dates have a Calendar lookup and are not limited to Pay Period Begin dates.

• An Empl Rcd may not have contracts with overlapping dates AND two different contracts cannot exist within the same pay period.

• Job Data records with the ACD or GRD paygroups have all been updated to have a Comp Frequency of “C”. (Job Data Records on LOA have not been converted. Contract history data has been created for all current job records with ACD/GRD paygroups if previous Contract data did not exist.) Records will be converted in two phases. On 7/13/2011, ACD/GRD records in SWB will be converted. On 8/10/2011, records with 8/7/2011 end dates will be converted. SUM/WTR jobs will not be converted.

• Changes to Std Hrs cannot be made if there is already an existing position changes that has not been processed.


Renew Contract Continued

• Job Data will not be updated on Renew Contract unless a change has been made to the contract amount or to Standard Hours.

• If Contract is renewed in October (for example) with an 8/16 Start Date, the department will be required to complete a PAR.

• There is a plan to Auto-Term Benefits Eligible job records if no active contract exists for them by the end of September.


Terminate Contract

• The only field open for entry on Terminate Contract is Term Date.

• Job Data will not be updated if Terminate Contract is selected; only the Termination Date on Contract will be updated.


Contract Data


Hire/Rehire/Additional Jobs

• These transactions will automatically create Contract records for positions on ACD/GRD paygroups.

• SUM/WTR jobs cannot be created outside of the Summer calendar (typically 5/16 – 8/7).

• Contracts may not be longer than 12 months. Only SUM/WTR jobs can cross Fiscal Years.

• If Hire/Rehire/Additional Job with Contract is entered in October (for example) with an 8/16 Start Date, the department will be required to complete a PAR.


Promotions/Demotions/Transfers

• The Std Hrs position field is open for edit on PRO/DEM/XFR/PAY transactions for all paygroups except STU.

• If a position is entered that does not have a Comp Frequency of “C”, the transaction will be hard stopped and an exception form will need to be completed.

• PRO/DEM/XFR transactions can have a pay increase or decrease.


Pay Change Variations• Lump Sum Retro: In this variation, the previous pay period’s

over/underpayment is subtracted /added from the current pay period. This can be chosen for pay increases only.

• Recalculated: In this scenario, the pay change is spread out over the remaining pay periods only. This variation is for pay decreases only.

• Mid-Contract Changes: In this scenario, the pay change will resemble an effective dated pay change. The Comp Rate will be a calculated amount based on what the contract would pay if the new rate were to be paid from pay period of the action date going forward to the end of the contract. The new Contract Amount will be stored in the Annual Benefits Base Rate field (as it is currently being done for employees that go on Sabbatical for 2 semesters).

• Please review the Pay Changes presentation for more details and examples of Contract pay changes.


Annual Benefits Base Rate


Online Renewal

Contract Pay


Contract Pay- Basic Concepts

• Employees Start and End on their actual start and end dates

• Once a start or end date has been established for a contract you must use exception processing (ie DMX form) to change dates

• Employees may have checks at the beginning and end of their contract that have paychecks that are less then what they are currently used to

• Employees can’t have overlapping contracts on the same employee record– Back to Back Contracts (start and end date are in

the same pay period) must be different employee records


Differences on the Online Renewal Pages

• Page is open year round• Short work Break is no longer

going to be used. People will populate the page based upon their contract dates.

• Contract Begin and Contract End Date- determine how and when the employee is to be paid– Contracts cannot exceed 12 months


Differences on the Online Renewal Pages Continued

• Employee will remain active until department terminates the employee or OHR Auto terminates them.

• Online Renewal will hook into PTR workflow, so there will no longer be a Online Renewal Approver

• You can change the standard hours on the Online Renewal Pages


Similarities on the Online Renewal Page

• There is still a search page that needs to be used to look for employees in your area

• You are still able to submit a renewal by clicking the submit checkbox and then making changes to the next renewal

• You can still review an Online Renewal and move it to the review/submitted tab


General Security Conceptions

• Security Based– Users must have Online Renewal

Submission Role– Once Online Renewal is submitted the

renewal will generate approval steps based on the PTR workflow setup

– When a transaction is submitted by a user the transaction will also appear on their PTR work list for the originator to track


Key Dates for Renewal PagesDate

7/13 Conversion of ACD’s and GRD’s who are on Short Work Break to Comp Frequency C. Auto Renew population renewed from 8/16-5/15

7/25 Online Renewal Page Open

8/10 Second Conversion of GRD’s who had an end date of 8/7

8/11 Employees who were part of the second conversion are available through the online renewal pages

8/18 All renewals that have a start date from 8/8-8/19 must be submitted and approved by this date


Search Page

• To look for an employee in your department you must either type in the department code or the department description on the search page.

• Search Page was required to improve performance.


Transaction Page- FeaturesFilters

• There are many filters at the top of the page that can help you narrow down your list to a select group of employees.


Transaction Page- FeaturesSubmit/Review Checkboxes

• To submit click the submit checkbox, correct data, and click the submit button at top of page


Transaction Page- Features Submit/Review Checkboxes

Cont• To Review an item check the

review checkbox and click the submit button at the top of the page.

• This moves the renewal to the submitted/reviewed tab and creates a PTR draft.


Transaction Page FeaturesTabs of information

• Contract Renewal– Department can see basic information about an

employee and submit or review each person listed• Additional Info

– Position information• Current Contract

– This is used to help departments see what the employee is currently set up as


Completed Page Features

• Does Not Exist Yet for Explaination


Canceling From Mass Renewal Page


Returns


How this works with PTR

• A Submitted renewal creates a submitted PTR for that employee and employee record number

• A Reviewed Renewal creates a draft PTR for that employee and employee record number.

Note** This employee will be locked up to any other originators through PTR

• Originator will be able to view all transactions that are generated from the online renewal on their work list


How this works with Workflow

• Will State the Work Flow rules here


Emailing Functionality

• Renewals that are submitted through online renewal will send emails to the account signer, dean, and provost (where applicable) for approval required on the online renewal

• Renewals that are


Process Flow

• Picture Diagram Of how Online renewal connects to PS goes here.


Contract Pay Changes


Where do contract changes appear?

• Job Data– Work Location

• Effective Date• Action/Reason

– Compensation• Comp Rate


Job Data – Work LocationAdd a new row and change:•Effective Date•Action/Reason


Job Data – CompensationChange:•Comp Rate•Select ‘No Proration’ •Check or Uncheck ‘Lump Sum Retro Payment’•Click ‘Calculate Compensation’


Types of Pay Changes

• Lump sum retro• Recalculated• Mid-contract changes


Example Setup – Contract Increase

• Payment over 5 pay periods.• Pay change in 4th pay period.• Pay change effective 9/21/11.• Original = $10k• Revised = $20k


Lump Sum – Contract Increase

• Contract changed to $20k in 4th pay period.• Lump sum calculated by the difference in pay between the

previous pay periods.• Paycheck is $10k.

– Lump sum payment: $6k– Revised schedule payment : $4k


Recalculated – Contract Increase

• Contract changed to $20k in 4th pay period.• Recalculated amount:

– Updated Goal Amount = New Contract Amount minus Amount paid.

– Paid over the beginning of the pay period until the contract end date.

• Paycheck is $7k.


Mid-Contract – Contract Increase

• Contract changed to $20k in 4th pay period.

• Same as Recalculated amount except:– Paid only the rate of $20k from the 4th pay

period forward (use Pay Change Calculator).

– Use $13,600 for the new contract amount.

• Paycheck is $6800.


Pay Calculator – Contract Increase


Comparison – Contract Increase

Pay period: 1 2 3 4 5 Total

Lump Sum: 2000 2000 2000 10,000 4000 20,000

Recalculated: 2000 2000 2000 7000 7000 20,000

Mid-Contract: 2000 2000 2000 6800 6800 19,600

*Remember that changes to Contract Pay are calculated from the beginning of the pay period.


Example Setup – Contract Decrease

• Payment over 5 pay periods.• Pay change in 2nd pay period.• Pay change effective 8/24/11.• Original contract: $20k• Revised contract: $10k


Contract Decrease – Lump Sum

• Contract changed to $10k in 2nd pay period.

• Lump sum calculated by the difference in pay between the previous pay periods.

• Paycheck is $0k.– Lump sum payment: -$2k– Revised schedule payment : $2k


Recalculated - Contract Decrease


• Recalculated amount:– Updated Goal Amount = New

Contract Amount minus Amount paid.– Paid over the beginning of the pay

period until the contract end date.



Mid-Contract – Contract Decrease


• Same as Recalculated amount except:– Paid only the rate of $10k from the 2nd

pay period forward (use Pay Change Calculator).

– Use $12,400 for the new contract amount.



Pay Calculator – Contract Decrease


Comparison – Contract Decrease

Pay period: 1 2 3 4 5 Total

Lump Sum: 4000 0 2000 2000 2000 10,000

Recalculated: 4000 1500 1500 1500 1500 10,000

Mid-Contract: 4000 2100 2100 2100 2100 12,400

*Remember that changes to Contract Pay are calculated from the beginning of the pay period.


Paycheck - Lump Sum


Multiple contracts


Ways to pay

An employee can be paid for multiple contracts from1.Contracts on different empl records,2.Back-to-back contracts on the same employee record do not end and begin within the same pay period.


Contracts on different empl records

• Overlapping contracts should always be on different employee records.

• Each record is calculated separately then added to the paycheck.


Back-to-Back Contracts

• If on the same empl record, cannot end and begin in the same pay period.


Exception Processing


View Only Contract Pay Page

What you can see to help research issues.


Contract Pay Page


Contract Pay

• Effective Date: same as Contract Begin Date• Contract Pay Type: select Contract Paid over 9 Months.• Payment Term: always select Pay Over Contract. • Monthly Frequency: always select M.• Pay Period Hours: equal to employee’s standard hours

multiplied by 2.• Assign Hours To: select Contract Earnings Only.• Renew Contract Automatically: select to

automatically renew the contract using the Contract Renewal batch process.

• Contract Begin Date and End Date: enter these dates.

• Actual Start Date: Same as contract begin date.• Termination Date: the date the employee terminates

the contract, if different from the contract end date.


Contract Actuals


Contract Actuals

• Work Days in Contract: number of work days in a contract, using the contract begin and end dates on the Contract Pay page.

• Paid to Date: amount paid to the employee to date, using the total of all contract earnings paid to the employee.

• Earned to Date: amount earned by the employee to date, calculated using the following formula: total contract amount x (days worked to date / work days in contract).

• Days Worked to Date: number of days the employee has worked since the actual start date.


Additional pay

Dashboards


Additional Pay Page


Additional Pay Definitions

• Earnings: how much pay earned during the pay period,.

• Goal amount: the payroll system stops issuing additional pay when this amount has been reached.

• Goal balance: total the payroll system has paid to date.


How to View a Contract Employees Paycheck


PARS- Payroll Action Request


Sick Leave Accruals


Employee Benefits Impact

Contract Pay


Benefits Basic Concepts

• Employees are benefits eligible when engaged as long-term temporary or regular employee with a minimum of .5 FTE.– Eligibility may apply to certain employees hired

into multiple benefits ineligible jobs, that when combined make the employee eligible.

• Employees are required to participate in a mandatory retirement plan when working at least 20 weeks in a fiscal year.– Restrictions apply to student employees,

postdoctoral scholars and employees with certain visa status.


Affect of Pay Realignment

• First and last paychecks may be partial periods– Academic Year 2011-2012

• August 26, 2011 check contains 4 days of Pay

• June 1, 2012 check contains 2 days of Pay

– Benefits eligible employees may see a very small, or no paycheck due to low earnings relative to benefit premium costs.


Health & Welfare Deductions

• Medical, dental, vision, employee life and disability benefit plans permit partial deductions.

• Full or partial deductions not taken for health and welfare benefits are placed into arrears and roll over to the next available payroll.


Mandatory Retirement Deductions

• Arizona State Retirement and Optional Retirement Plan deductions are taken based on a percentage of eligible earnings for the period.

• Employees with a Service Purchase Agreement to buyback prior Arizona State Retirement service must have an attempted deduction for all paychecks and may not request an exception for partial pay periods. – Partial Service Purchase deductions are not

permitted; any unfunded deduction amount will roll over to the next available payroll.


Voluntary Retirement Deductions

403(b) and 457(b) • 403(b) and 457(b) deductions will attempt

to be withheld from any partial pay period. If there is insufficient earnings to take the full deduction, none will be taken.

• No partial deductions are permitted and no arrears balances are created for 403(b) or 457(b) plans.

• Employees who wish to suspend or change their voluntary deductions may do so in advance by following the instructions at http://cfo.asu.edu/fs-contractpay-faq – Deadlines apply. Employees are encouraged to

contact their respective vendor asap.


Leaves of Absence

• Requests for Paid Leave of Absence…

• Requests for Unpaid Leave of Absence…

Meeting scheduled June 14th with Benefits to define


Salary Based Benefits

To define once ABBR analysis is completed


Non-Renewed Employees

• To avoid continuation of benefits for inactive employees, those not renewed by September 30, 2011 will be terminated retroactively to August ##

• Benefits will be subject to retro termination with COBRA continuation coverage offered to the employee and eligible dependents.

• Going forward, any employee whose contract ends without renewal will be terminated [need to define frequency]


New Benefits Eligible Employees

• New benefits eligible employees hired on or after July 20, 2011 are subject to the following:– 90-day waiting period for medical, dental,

vision, life, flexible spending accounts, health savings plans, short-term disability and Hartford long-term disability.

– Twenty-six week waiting period for Arizona State Retirement Plan and its long-term disability plan

– Optional Retirement Plan, Voluntary 403(b) and 457(b) plans and leave plans are effective immediately.


Benefits Timeline(use visual representation below)

• July 20, 2011 - New hires subject to waiting periods for certain benefits and retirement.

• August 16, 2011 – New academic year begins• August 26, 2011 – Partial pay (4 days)• September 30, 2011 - All non-renewed benefits eligible

employees terminated• October – November - Annual Benefits Open Enrollment• November ## - Effective date of coverage for benefits

subject to 90-day waiting period (Aug 16 new hires)• January 1, 2011 – New benefit Plan year commences• February ## - Effective date of coverage for Aug 16 new

hires electing or being defaulted into ASRS• February 2012 – Annual pre-collect of summer benefit

premiums begin• May 15, 2012 – Academic year ends• June 1, 2012 – Partial Pay (2 days)


Contract Pay Resources

Website, Calculator, Who to Contact, ETC


Contract Pay Website

• http://cfo.asu.edu/fs-contract-pay


Academic Pay Calculator


Who to Contact?

contract pay test

Education

pay check

pay periods

net pay

pay paychecks

summer pay

total pay

pay isnt

month faculty