Supplemental compensation may include pay to University employees for conducting work arranged and paid through external agencies or grants, or for conducting specialized work outside of normal duties, paid through sponsored programs or entities external to the University. Supplemental compensation in this policy does not refer to overtime work in which an employee performs work related to normal duties beyond the 40-hour work week. Work above the normal 40-hour work week is generally compensated by compensatory leave if an employee is eligible to earn compensatory leave.
Faculty who work on a nine-month appointment may follow work hours that are outside the University’s business hours. Teaching courses to meet student needs may call for flexible schedules and may include weekends, evenings, or other non-traditional schedules. Faculty may engage in extra service or work activities for supplemental compensation, provided the activities do not conflict with scheduled or assigned duties such as teaching, student support hours, committee work, University service, or scholarly productivity.
The policy addresses instances in which the faculty member provides services above the regular full-time workload and outside of hours scheduled for the assigned workload. For such additional work, the faculty member is paid through the University, and benefits are deducted from the pay. Twelve-month faculty or staff may perform work for supplemental compensation provided the additional duties are relatively unrelated to, or independent of, their normal work. When such assignments are not part of the normal assignments of the unclassified staff member, additional compensation may be permitted. Such additional compensation must be justified on a case-by-case basis and approved prior to the beginning of the assignment. It is the responsibility of the unclassified staff member to monitor the allowable compensation and not to exceed the limit.
The work for which supplemental compensation is paid must not interfere with or conflict with regular University duties and must be approved in advance through the University’s administrative processes. Faculty or staff cannot receive supplemental compensation for work that has already been compensated by University sources or when conducting work related to assigned University responsibilities. The forms below must be completed for prior approval and payment of supplemental compensation:
Departmental budgets or other designated funds intended to pay supplemental compensation shall bear all costs associated with the supplemental compensation, including employer contributions for employee benefits, such as retirement and Medicare.
To estimate the total amount to be charged, the Estimate of Compensation section of Form A must be filled out completely. Incomplete forms will be returned without action by the payroll office. Under the Estimate of Compensation section, the Estimated Gross Payment Amount to Employee, line one, represents gross pay for the employee who is earning the supplemental compensation. Line four indicates the total amount to be charged to the applicable budget for the supplemental compensation, which includes gross pay plus employer contributions for employee benefits. For an example to demonstrate this calculation, see below:
| Est. Gross Payment Amount to Employee * | $1,000.00 |
|
Add: Employer contribution for Medicare benefits @ 1.45% **
|
$14.50 |
|
Add: Employer contribution for retirement benefits @ 28.40% **
|
$284.00 |
| Est. Compensation and Benefits to be Charged to Budget | $1,298.50 |
The amount of supplemental compensation earned in one year is limited. Supplemental compensation is subject to a cap equal to 25% of the base appointment salary plus faculty summer salary. Stipends for endowed professorships do not factor into the 25% limit or the base salary. Definitions related to supplemental pay are provided and may not be all-inclusive:
Institutional Base Salary: The annual compensation paid for assigned job responsibilities and duties.
Categories for Supplemental Compensation: For the purposes of the Guidelines for Approval of Supplemental Compensation paid by the University, two general categories of activities are allowed for supplemental compensation:
Note: Additional compensation is subject to audit. To comply with local, state, or federal audit expectations, the University must have and abide by clear policies and procedures governing compensation. To ensure equitable application of this policy, these guidelines apply to all projects regardless of the source of funding (federal, state, local government, and non-/for-profit private entities) and whether the project is fixed price or cost-reimbursable.
For example, using federal funds to compensate faculty beyond their institutional base salary is prohibited. Unusual circumstances may call for a case-by-case review. Examples of unusual circumstances include: 1) consultation work across departmental lines; 2) consultation work involving a separate or remote operation; 3) work performed by the consultant in addition to the regular departmental load. In general, extra compensation above the base salary may be allowable provided that such consulting arrangements are specifically provided for in the agreement or approved in writing by the sponsoring agency.
A nine-month faculty member may receive compensation paid by or through the University during the summer period between the end of one academic year and the start of the next. The maximum rate for work done outside the academic year is 2/9 of the individual’s base salary.
Additional compensation is subject to a cap equal to 25% of the base appointment salary (plus summer salary). The cap applies to all sources of funds. See example below.
A faculty member with a nine-month AY base salary of $50,000 may earn additional compensation during the nine-month appointment of up to $12,500 for a maximum nine-month salary of $62,500.
$50,000 × 0.25 = $12,500 maximum in additional compensation
$50,000 + $12,500 = $62,500 maximum nine-month compensation
Summer Faculty Example: A faculty member with a 9-month AY base salary of $50,000 may earn up to $11,111 in summer salary (equal to 2/9) and additional compensation of up to 25% or $2,778.
$50,000/9 months × 2 = $11,111 maximum summer salary
$11,111 x 0.25 = $2,778 maximum in additional compensation
$11,111 + $2,778 = $13,889 maximum summer compensation
The Office of Research and Sponsored Programs must be contacted concerning fringe benefits included in supplemental compensation provided by external funds.
Note: Stipends for endowed professorships are not included in base salary or as part of the limit on supplemental compensation.
This policy is distributed via the University Policies webpage.