Purpose

To provide an overview of Contract Pay and highlight the changes resulting from the Payroll System upgrade.

Affected Employees

Teachers in Pay Basis Code 21P

Overview

Contract Pay is the process used by the Payroll System for teachers whose pay basis code is 21P to equally distribute the employee’s wages over the academic year as determined by each agency. The contract dates of the academic year are stored in the Payroll System for each individual agency. All dates are set up on the Contract Pay page for the entire period of the contract, regardless of the employee’s date of employment. The Payroll System will divide the annual salary by the number of days in the contract and pay the employee accordingly.

The Contract Pay page is effective-dated and stores the employee’s contract dates. A new set of contract dates must be entered each year the employee is in a 21P position.

The payments for Contract Pay are automatically recorded on the Additional Pay page using the Earnings Code CON. The Earnings Code is system-generated and system-updated with a new effective-dated row posted for each biweekly payment having an earnings change. These changes can be based on a new salary, new work percentage, leave date, or reinstatement from a leave date, regardless of whether the transaction is submitted on a current or retroactive basis. When the Goal Balance (the amount paid to the employee) is equal to the Goal Amount (the amount of the contract), the payments end.

If the employee is appointed after the beginning of the contract date, the Payroll System will calculate the prorated amount of the contract to be paid to the employee, based on the effective date of the employee’s placement into the 21P position. At the end of the contract year, the payments will end, BUT the employee will remain in active status.

Path

Administer Workforce>Administer Workforce (GBL)> Use>Contract Pay (Agency).

New Fields

• Monthly Frequency – Defaults to M
• Review Contract Automatically?: Not used
• Actual Start Date – Not used
• Termination Date – Not used

System Processing Changes

The Contract Pay page will be automatically populated by the Payroll System when an employee is hired, rehired, concurrently hired, or transferred, or when a position change is processed within the contract year to a position whose pay basis code is 21P (if no current contract exists). The contract dates will be stored on the Department page and updated annually.

Agency Changes

The agency will no longer be required to enter contract dates for those employees entering into 21P positions on or after the beginning of the academic year. However,contract date entries will still be required at the beginning of the academic year for employees who were active at the end of the previous academic year and have remained active in a 21P position.

Questions

Questions that relate to changes in Contract Pay processing resulting from the Payroll System (PayServ) upgrade may be directed to the Payroll Audit mailbox.

Prior to August 4, questions will be answered within two business days. After August 4, questions will be answered within 24 hours.