Faculty Payments-Standard Operating Procedures

• Associated Administrative Regulation link related to Faculty.
  • www.uky.edu/regs/administrative-regulations-ar
• Faculty that are new hires will not be paid retirement on summer salary occurring before their start date, because they are not between assignment periods. To qualify for summer salary, a faculty must work both the Spring & Fall of a given year.
• New faculty who are working in advance of their academic contract period should be in a temporary faculty line and as such, retirement is not paid.
• Faculty should only have one assignment in SAP at any given time.
• Summer payments should be entered as an additional payment on their original assignment. The college that the faculty members’ prime assignment falls under will be the one responsible for entering payments.
• Summer wage types should only be utilized during the months of May-August.
• Any additional payments for the winter intersession should be treated as overloads.
• The payment of wages should occur while the work is being performed, not at the end of the work semester or in advance of service.
• When determining the appropriate wage type for summer pay, the true annual salary should be used to determine monthly pay. True annual salary includes base annual salary plus administrative stipends. (See Summer Administrative Payments for more information).
• In compliance with Uniform Guidance issued by the Federal Government, the following rules apply to all funding sources…
• Note: per guideline, summer salary is set based on base pay only
  • Annual base salary equals X
  • Annual stipend equals Y
  • Summer salary (Z) equals 1/9 of X+Y (1/10, 1/11 as appropriate)
  • Total compensation equals X+Y+Z. 

• Summer supplements are for 9-,10-, or11- month faculty.
• Summer is considered one session.
• Summer should be looked at as May 16-August 15 of a given year.
• There are two wage types that are applicable for summer research payments:
  • Wage type 2340= Summer Research < 1/9^th
  • Wage type 2350= Summer Research > or = 1/9^th
• To determine retirement eligibility for summer research you will need to calculate whether the amount of money they are receiving for the summer months is equal to or greater than one month of their 9-, 10-, or 11-month salary, this includes both research and administrative payments. If the answer is yes; then retirement will need to be paid, and the wage type of 2350 should be utilized. If you calculate and the amount is less than one month of their salary, then wage type 2340 should be utilized and will not pay out retirement. The retirement contribution is tied to these wage types; you do not need to do anything additional after choosing the wage type for retirement to pay or not.
• To determine the exact amount of salary for one month, reference SAP transaction PA20, infotype 0008-Display Basic Pay, utilizing the True Annual Salary, that amount needs to be divided by the employee subgroup, i.e. 9-,10-, or 11- months to come up with a monthly salary amount. This amount is what you will use to determine whether your summer research payment is less than, equal to, or greater than 1/9^th.
• Payment for summer research pay should be done in SAP on transaction PA30: Additional Payments-Create. This transaction has infotypes for a one-time (0015) or recurring (0014) payment and will pay out in the pay period associated with the date of origin on the infotype record.
  • A QRC-Quick Reference Card is available titled PA30-Create Additional Payments and is available at uky.service-now.com. This QRC has instructions for entering the payment as well as information on when the payment will be paid out, and cost center assignment.

• Summer administrative payments are for faculty who are doing administrative work outside of their academic period.
• One wage type is utilized for summer administrative payments:
  • 2230- Faculty Admin
  • 2395- Summer Admin w/Benefits
• To determine retirement eligibility for summer administration you will need to calculate whether the amount of money they are receiving for the summer months is equal to or greater than one month of their 9-,10-, or11-month salary, this includes both research and administrative payments. If the answer is yes, then retirement will need to be paid, and the wage type of 2395 should be utilized to pay out retirement. The retirement contribution is tied to these wage types; you do no need to do anything additional after choosing the wage type for retirement to pay or not.
  • To determine the exact amount of salary for one month, reference SAP transaction PA20, infotype 0008-Display Basic Pay, utilizing the True Annual Salary, that amount needs to be divided by the employee subgroup, i.e. 9, 10, or 11 months to come up with a monthly salary amount. This amount is what you will use to determine whether your summer administrative payment is less than equal to, or greater than 1/9^th one month salary^.
• Payment for summer administrative pay should be completed in SAP on transaction PA30: Create Additional Payments. This transaction has infotypes for a one-time (0014) for recurring (0015) payment and will pay out in the pay period associated with the date or origin on the infotype record.
  • A QRC-Quick Reference Card is available titled PA30-Create Additional Payments and is available at uky.service-now.com. This QRC has instructions for entering the payment as well as information on when the payment will be paid out, and cost center assignment.

• Winter intersession payments are for faculty who are teaching during December/January. 
• If the course is considered in load no additional payment is required.
• If the course is in addition to workload an overload may be required, refer to the Office of Faculty Advancement website ofa.uky.edu.

Master Award List link www.uky.edu/ofa/content/awards

Lump Sum Payments:

• Lump sum payments-Wage Type 2270-Lump sum payments are activities done outside of the academic appointment. Examples could include course development, service coverage not related to shift differential or on call, etc.
• Lump sum payments should be based on a fee schedule determined by each college.
• One wage type is utilized for lump sum payments.
  • 2270- Lump Sum Payment
• Payment for lump sum pay should be completed in SAP on transaction PA30: Create Additional Payments. This transaction has infotypes for a one-time (0014) or recurring (0015) payment and will pay out in the period associated with the date or origin on the infotype record.
  • A QRC-Quick Reference Card is available titled PA30-Create Additional Payments and is available at uky.service-now.com. This QRC has instructions for entering the payment as well as information on when the payment will be paid out, and cost center assignments.

Wethington Awards:

• Wethington award policy and procedure are sent each year by the Office of Faculty Advancement, please refer to their website for guidance ofa.uky.edu.
• One wage type is utilized for Wethington award payments:
  • 2175- Wethington Award
• Payment for Wethington awards should be completed in SAP on transaction PA30: Create Additional Payments. This transaction has infotypes for a one-time (0014) or recurring (0015) payment and will pay out in the pay period associated with the date of origin on the infotype record.
  • A QRC-Quick Reference Card is available titled PA30-Create Additional Payments and is available at uky.service-now.com. This QRC has instructions for entering the payment as well as information on when the payment will be paid out, and cost center assignment.

Other Awards:

• Other awards are issued to individuals whose outstanding service at the University of Kentucky earns recognition.
• The approved master awards and honor list can be found on the Office of Faculty Advancement website https://ofa.uky.edu/advancement-and-development/awards-honors.
• One wage type is utilized for other award payments:
  • 2250- Award
• Payment for other awards should be completed in SAP on transaction PA30: Create Additional Payments. This transaction has infotypes for a one-time (0014) or recurring (0015) payment and will pay out in the pay period associated with the date of origin on the infotype record.
  • A QRC-Quick Reference Card is available titled PA30-Create Additional Payments and is available at uky.service-now.com. This QRC has instructions for entering the payment as well as information on when the payment will be paid out, and cost center assignment.

Internal Overload Payments:

• Overloads are for work outside of the faculty’s academic load.
• One wage type is utilized for overload payments:
  • 2100-Overload
• Pending approval through the faculty overload process accessible in myUK. Payment for overloads should be completed in SAP on transaction PA30: Create Additional Payments. This transaction has infotypes for a one-time (0014) or recurring (0015) payment and will pay out in the pay period associated with the date of origin on the infotype record.
  • A QRC-Quick Reference Card is available titled PA30-Create Additional Payments and is available at uky.service-now.com. This QRC has instructions for entering the payment as well as information on when the payment will be paid out, and cost center assignment.

Administrative Stipends:

• Administrative stipends are supplemental compensation for an administrative position and are considered part of the Institutional Base Salary.  The administrative assignment should be included in the faculty’s Distribution of Effort (DOE).  Stipends should be included on the 0008-Basic Pay Infotype. Examples would include chair, vice chair, director of a center or institute, etc. and occur in conjunction with the academic period.
• One wage type is utilized for administrative stipends:
  • 1110- Admin Stipend-Base

• Payment for administrative stipends should be completed in SAP on transaction PA40-Change in Base Pay.

  • A QRC-Quick Reference Card is available titled PA40-Change in Base Pay and is available at uky.service-now.com. This QRC has instructions for entering the payment.