Indiana University

University Human Resources

Additional Pay

Additional pay is any bonus or supplemental pay outside of the regular hourly or salary pay for an employee. It includes things such as incentives, tools, extra percentage pay, etc.

1. Do a Search/Match to find the employee's university ID.

2. Navigate to the Additional Pay page using the following path. Enter the EmplID and check the Include History box in order to be provided with all of the employee's information.

3. Click on Search and enter the following information on the Additional Pay 1 tab.

Earnings Code: Use the lookup to locate the eligible earn codes for additional pay. See Earn Code descriptions at the end of the instructions.

Effective Date: Enter the effective date for the additional pay.

Addl Seq#: HRMS needs this number to uniquely identify the additional pay. The additional sequence number entered here will be brought forward to the pay sheet pates. The additional sequence number should always be 1, unless there are multiple additional pay records for an earnings type within the same payroll period. In those situations, the addl seq# should be incremented by 1.

End Date: You can specify an End Date for each additional pay. For example, if you know that an award was for service over a quarter, January 1 through March 31, you can enter those dates in the Effective Date and End Date fields respectively.

Date Processing of Additional Pay

To process additional pay for an employee, the system uses two dates you establish on the Additional Pay 1 page: the Effective Date and the Earnings End Date. (The Earnings End Date is optional.)

The system processes additional pay much the same as it does general deductions. As a general rule, if the Effective Date of the additional pay is less than or equal to (<) the Pay Period End Date, the system pays the additional pay. If you specify an Earnings End Date, the system pays the additional pay only if the End Date is greater than (>) the Pay Period Begin Date.

The following charts show examples of how the system uses dates in processing additional pay. The pay periods have the following dates:

Pay Period Begin Date 02/15/99

Pay Period End Date 02/28/99

Paycheck Issue Date 03/01/99

Earnings End Date

Additional Pay Paid

Reason

02/14/99

No

Earnings End Date NOT > Pay Period Begin Date

02/15/99

No

Earnings End Date NOT > Pay Period Begin Date

02/16/99

Yes

Earnings End Date > Pay Period Begin Date

03/01/99

Yes

Earnings End Date > Pay Period Begin Date

Additional Pay Effective Date

Additional Pay Paid

Reason

02/15/99

Yes

Effective Date < Pay Period End Date

02/16/99

Yes

Effective Date < Pay Period End Date

02/28/99

Yes

Effective Date < Pay Period End Date

03/01/99

No

Effective Date NOT < Pay Period End Date

Rate Code: Not used

Reason: For informational purposes, you can indicate the reason the employee is receiving additional pay. Select from the drop down.

Earnings: Enter the amount to be paid in equal payments for monthly's. For biweekly's, use the hourly rate field and insert the additional cents per hour.

When a TPO or CPO percentage is the additional pay, leave the hourly rate blank. The system will automatically calculate the selected percentage of the base hourly rate.

Goal Amount: Do NOT enter. The E-Doc will provide the monthly amount to enter on the earnings line through a calculation that runs against the payroll calendar.

Goal Balance: The additional pay goal balance displays here. HRMS updates the balance every time Pay Confirmation is run.

Sep Chk#: is NOT used.

Disable Direct Deposit: is NOT used.

Prorate Additional Pay: Always check this box.

OK to Pay: Check this box to indicate that the additional pay is approved and no further approval is needed at the pay sheet level.

Applies to Pay Periods: Monthly: there is only one choice available - First, and this should be checked. For biweekly's, all three boxes should be checked.

4. Enter the following information on the Additional Pay 2 tab.

Job Data Overrides: Position: Additional pay earnings are typically paid out of a different account that the employee's regular pay. Enter the Additional Pay POOLED position provided by the department for the additional pay. This entry will populate the Business Unit, DeptID, Job Code, and Shift fields.

Note: There are no entries on the Additional Pay 3 tab.

5. Complete the Addl Pay Funding Distribution tab.

Earn Code: will default.

Work Area: identifies the payroll voucher flow. Select the Work Area code by using the lookup icon .

Effective Status: defaults in as Active (selection should always read active).

Funding Type: will default in as percent. For Phase 1, we will leave the selection as percent.

Account: enter a number or select an account number, using the lookup icon .

Note: If you enter a Sub Account, you will also enter the Sub Object, or click on the lookup icon to locate the Sub Object code.

Project Code:is an optional accounting key field that allows you to track expenses even if they are entered on a different campus, to track expenses even if they are entered on a different campus, org, or account. If you know the Project Code you can enter it or click on the lookup icon to locate the Project Code.

Percentage: enter the percentage of the salary that is going to be charged to this account, i.e., job is 15 standard hours paid off of one account would reflect 100% of earnings to be charged to this account.

Note: If you will be using multiple accounts, click on the Accounting Line and repeat the instructions from the previous bullet. The total percentage of all accounts combined must equal 100%.

6. After completing your entry, Click on save near the bottom of the page to save your information to the HRMS database.

EARN CODE - REASON DESCRIPTIONS

Academic Overload (AOV)
An academic overload is additional earnings for an assignment that is academic in nature but is not part of the employee’s regular role. Academic overloads are typically related to a teaching assignment. Academic overloads result when academic employees participate in extension centers, e.g. School of Continuing Studies; when 12 month academic administrators teach in the summer; when academic employees teach extra courses because departments cannot fill lecture positions; and due to extenuating circumstances. [Earn codes in HRIS today are A01 and A02.]

Rules - Limited to full-time academic and exempt staff employees. Requests for overloads are documented by providing a written explanation detailing the type of services being provided and the time period involved. Depending on the campus, documentation may be required for all academic overloads or for overloads exceeding the 20% rule. The written justification explaining the basis for the overload will be incorporated into the notes section on the electronic document for additional pay.

Academic Administrative Supplemental Pay (AAD)
Pay for additional administrative duties performed by an academic employee. [Earn codes in HRIS today are AS1 and AS2 used in conjunction with PAF Action ‘27’.]

Rules - Limited to academic employees.

Displacement Allowance (DSA)
A displacement allowance given to help defray the costs of maintaining an additional place of residency or additional funds to compensate for being overseas. [Earn codes in HRIS today are DS1, DS2 and SDS used in conjunction with PAF Action ‘29’.]

Rules - Limited to academic and exempt staff employees.

Overseas Allowance (OSA)
An allowance given to compensate for being overseas. [Earn codes in HRIS today are OSA and OSS frequently used in conjunction with PAF Action ‘30’.]

Rules - Limited to academic employees.

Research Leave (RLS)
A supplement given to academic employee on leave from regular duties to perform research. Typically, the employee is on leave without pay or leave with partial pay. [Earn codes in HRIS today are R01 and R02 used in conjunction with PAF Action ‘31’.]

Rules - Limited to academic employees.

Academic Summer Appointment (S1T, S1R, S1A, S1C and S2T, S2R, S2A, S2C)
Summer stipend paid to academic employee for teaching, research, administration or curriculum development. [Earn codes in HRIS today are SAF and SMF in conjunction with PAF Actions ‘05’, ‘06’, ‘07’ and ‘08’.]

Rules -Limited to academic employees for summer. Summer calendar, minimum and maximum amount are set by each campus. Salary limits are based on formulas associated with the reason for appointment. Title activity may be required.

Student Summer Appointment (SA3, SA4)
Summer stipend paid to graduate student for teaching and research. [Earn codes in HRIS today are SAS and SMS in conjunction with PAF Actions ‘07’ and ‘08’.]

Rules - Limited to student academic employees for summer. Summer calendar, minimum and maximum amount are set by each campus. On some campuses, the student academic must be enrolled in the upcoming fall semester. Requires title activity.

Supplemental Pay (SPS, SPT, and SUP)
Payments for ‘occasional and sporadic’ services provided to the university by an employee outside of the normal scope of employment. It is only used for academic employees or exempt staff. Reasons for a supplemental include: (1) teaching intermittent, short-term courses, (2) giving a lecture or limited number of lectures and (3) other services. [Typically handled by supplemental payroll voucher today.]

Rules - Payment is made upon completion of service.

Faculty Fellowships (FCF)
Description - Academic fellowships awarded primarily during summer months. [Typically handled by supplemental payroll voucher today.]

Rules - Limited to academic employees, payment is made as specified.

Award (AWD)
Pay associated with staff merit awards, outstanding teaching awards and other nominated awards. [Typically handled by supplemental payroll voucher today.]

Note that FYI routing includes department and organization in cases where the award is made at the campus level.

Incentive Pay (INP)
Incentive payment(s) to staff employee for the purpose of rewarding and encouraging continued excellent performance. May be a lump sum for exempt staff or payments for prior pay periods for exempt and non-exempt employees. [Typically handled by Supplemental-Bonus Voucher today and entered as earn type of ICB and object code of 4588 today.]

Rules - Limited to staff employees.

Allowance (ALW)
Payments associated with car, housing, moving or tool allowances. [Typically handled by supplemental payroll voucher today.]

Rules - Limited to academic and staff employees.

Settlement (SET)
Payment associated with a legal settlement. Reasons for settlement include grievance, injury and severance. [Typically handled by supplemental payroll voucher today.]

Approval
Grievance: Legal Counsel in coordination with University Human Resource Services to campus HR
Injury: Legal Counsel in coordination with UHRS and Risk Management
Settlement: Legal Counsel in coordination with UHRS
Note: Need to route to Academic HR if academic employee due to potential title activity.

Retention Incentive Pay (RET)
Payment to productive academic employees who would otherwise terminate and begin receiving 18/20 Plan benefits. Payments are made as follows (1) at age 64, a one-time allocation of $5000 for expenses related to research, personal development or other professional activities and/or (2) beyond 64, 20% of base salary paid on monthly basis. [Typically handled by supplemental payroll voucher today.]

Rules - Limited to academic employees enrolled in the IU 18/20 Retirement Plan. The monthly payment is approved annually.

Temporary Adjustment (TP0, TP3, TP4, TP5, TP6, TP7, TP8, TP9, TP10, TP15 and possibly others)
When an employee is temporarily assigned to handling the responsibilities of another classified position, the employee receives a temporary pay adjustment expressed in a percentage increase from 3% to 10% of regular compensation rate. [PAF with PAF action of ‘37’ used today.]

Rules - Limited to staff.
Time restrictions of temporary assignment identified for non-exempt and/or exempt staff on some campuses. Maximum percentage(s) of salary adjustment identified per campus.

Temporary Pay Adjustment for biweekly employees require the entry of an hourly rate.

TPE: Temporary Pay for Exempt employees requires the entry of an "amount."

Continuing Premium Pay (CP3, CP4, CP5, CP6, CP7, CP8, CP9, CP0 and possible others)

Premium pay is assigned when a non-exempt employee receives a percentage increase from 3% to 10% based on skills or certification. The increase must be ongoing; intermittent premium pay for other reasons will be assigned on the paysheet. Percentage of increase will be identified in the reason.

Rules - Limited to non-exempt staff.

NOTE: When canceling a TPE

When canceling a TPE additional pay for exempt employees, you must reduce the amount of payment to meet the days to be paid in the month.

For example: TPE ($600) was entered for an exempt employee 4/1 - 6/30. The employee was promoted to another position on 4/16, and the department wanted to end the TPE on 4/15. You should cancel the additional pay with the effective date of 4/2 - 4/15, and reduce the dollar amount to $300 so that the employee will get only half of the month's amount.