Policies, Regulations and Rules / Authority
Provost and Executive Vice Chancellor
Title
Summer Salary and Supplemental Pay for
Nine-Month FacultyFaculty Summer Salary
ClassificationREG05.20.35
PRR Subject
Employment - Faculty
Contact Info
Vice Provost for Faculty Affairs (919-513-7741)
Rationale: Revision to address recommendations of the Audit Report on Non-Instructional Summer
Salary (2012); revisions include limitations on % effort for faculty working on sponsored programs
and limitations on exceptions to the 33.33% maximum summer salary. The revised regulation
includes all sources of supplemental pay for 9-month faculty members—instructional and non-
instructional summer salary and supplemental pay during the contract period.
Consultation Process:
1/26/12 Management Response to Audit Recommendations re policies and procedures for non-instructional summer salary.
2/17/12 Provost authorizes revision of regulation
3/23/12 General Counsel final review
4/5/12 Council of Deans (Department Heads)
4/10/12 Faculty Senate Personnel Policy Committee
4/30/12 Provost approval
5/15/12 EOM (information)
8/13/12 University Council (notification)
NA Board of Trustees (notification), if applicable
History: First Issued: June 1, 2004. Last Revised: May 10, 2011.
Related Policies:
NCSU REG05.20.14 - Supplemental Pay for EPA Employees
NCSU REG 10.10.06 Summer Research Supplemental Pay—Nine Month Employees [Repealed]
NCSU REG 10.05.15 - TEARS (The Employee Activity Reporting System)
Additional References:
Office of Management and Budget Circular No. A-21 Section J.10.d (1)
SOP for Summer Salary and Supplemental Pay for Nine-Month Faculty
Monthly Payroll Schedule
EMAS Summer Sessions Website
1. INTRODUCTION
This regulation covers summer earnings salary and supplemental pay for by faculty whose salary basis is the nine (9)-month academic year. or 12-month fiscal year
1.1 “Summer salary” for this purpose is are any earnings paid through NC State University for work performed by 9-month eligible faculty during the period between May 16 through August 15.
1.2 “Supplemental pay” is defined as compensation in excess of a faculty member’s annual salary paid by NC State for temporary increases in responsibility and/or for extra duties beyond the scope of the employee's contract/appointment.
1.3“Base salary” is the current annual salary of the employee as it appears in the appointment letter or subsequent notification of salary increase/decrease, plus any supplement that carries an anticipated duration of one full year or more.
1.4 “Effort reporting” is a federally-mandated process by which the salary charged to a
sponsored project (Ledger 5) funds is certified as being reasonable in relation to the effort expended on that project. “Effort” is the proportion of time spent on any activity, expressed as a percentage of an individual’s total university effort.
2. LIMITATIONS ON SUMMER SALARY
2.1 During the summer, a 9-month faculty member may be paid no more than a total of 33.33 % (based on 1.0 FTE equivalent) of his or her their nine-month base salary from all sources of funds. Exceptions beyond the 33.33% summer-earnings maximum must be approved in advance by the Dean/Vice Chancellor (not his/her designee). The Dean’s/Vice Chancellor’s approval and the rationale for the exception should be documented as described in the SOP for Summer Salary and Supplemental Pay for Nine-Month Faculty.
2.2 Exceptions above 33.33% do not apply to the rate of pay a 9-month faculty member receives in the summer from sponsored project funds. A 9-month faculty member’s allowable summer salary from sponsored project funds is calculated on the summer earnings maximum which is 33.33 % (based on 1.0 FTE equivalent) of a faculty member’s nine-month base salary from all sources of funds.
2.2 A 12-month faculty member may not be paid non-instructional summer salary from a sponsored project account.
2.32 Payment and effort must be consistent with rules and procedures of NC State and the funding agency. Some funding agencies may impose more restrictive guidelines regarding summer pay; the awarding documents/funding agency regulations are the ultimate authority on allowable expenses.
2.43 Regardless of the source of funds, summer salary will not be adjusted to reflect legislative salary increases.
2.54 All summer salary must have been processed for payment no later than September 30. See Standard Operating Procedure for Summer Salary and Supplemental Pay for Nine-Month Faculty for information on project numbers, purpose and earnings codes, and payroll schedules.
During the summer, a nine (9)-month faculty member may be paid up to a total of 33.33% (of the 1.0 FTE equivalent) of their previous nine-month salary, regardless of source of funds, including teaching summer sessions. Exceptions beyond the 33.33% summer-earnings maximum must be approved in advance by the Dean/Vice Chancellor.[1]
Departments may use summer instructional funds for salary for twelve (12)-month (Fiscal Year 1.0FTE) faculty who teach regularly scheduled Summer Sessions or Distance Education courses. However, any supplemental salary paid to twelve (12)-month faculty who perform compensated effort above and beyond their normal appointment or contract is covered by NCSU REG05.20.14 - Supplemental Pay for EPA Employees rather than by this regulation.
3. SUMMER INSTRUCTIONAL SALARY FOR NINE-MONTH FACULTY
3.1 Salary for summer session instruction is paid at the rate established by each college for their courses and posted on the Enrollment Management and Services’ Summer Sessions web site.
3.2 Salary for instruction of distance education courses offered during summer sessions will be determined by the program offering the course.
3.3 Summer instructional salary must not be authorized for the supervision of summer graduate student research for either nine (9)-month or twelve (12)-month faculty.
3.4 Request for payment to the employee for summer instructional salary may be submitted by the paying department before the effort has been completed.
4. SALARY FOR 9-MONTH FACULTY FROM SOURCES OTHER THAN SUMMER INSTRUCTION
3.1 Summer salary that will be paid through the university from sources other than summer instruction must be approved in advance through the applicable college process before the work begins.
4.1 Effort for which non-instructional summer salary will be paid must be approved by the appropriate administrator before the work begins. The A Standard Operating Procedure for Summer Salary and Supplemental Pay for Nine-Month Faculty determined by the Division of Finance and Business provides faculty and administrative staff involved with sponsored projects procedures for approval and reporting. For any change in effort or planned work schedule, a new approval is required.
4.2 Request for payment to the employee from non-instructional sources may be submitted by the employee before the effort has been completed. However, it is the responsibility of the faculty member and the college or unit to correct payroll payments made to the faculty member if there have been changes in the expected or reported effort for which the faculty member received payment.
4.3 NC State faculty are limited to 90% effort on grants and contracts cannot commit 100% of their effort to sponsored projects during the period May 16-August 15. Exceptions beyond 90% effort must be approved in advance by the Dean/Vice Chancellor (not his/her designee). The Dean/Vice Chancellor’s approval and the rationale for the exception should be documented as described in the SOP for Summer Salary and Supplemental Pay for Nine-Month Faculty. Faculty are limited to 90% effort in the summer paid from a grant or contract. This limit reserves time during the period for such activities as teaching, service or administrative duties, development of grant proposals, or time off for personal activities. Effort may need to be further limited depending on a faculty member’s summer responsibilities beyond the activities funded by the grant or contract.
4.4 Exceptions beyond 90% effort in a single monthly pay period must be approved by the Dean/Vice Chancellor (not his/her designee). If a faculty member commits 100% effort to a contract or grant in a single monthly pay period, he or she must understand that this excludes time spent on teaching, service or administrative duties, development of grant proposals, or time off for personal activities during the period. the department head or dean must make it clear to the faculty member that he or she cannot take time off or work on any other University activities other than the projects from which they are paid in that period.
4.5 Effort will be confirmed through The Employee Activity Reporting System (TEARS).
3.3 Confirmation of time worked for which summer supplemental pay was received must be completed by the 15th day of the month following payment.
3.4 All summer salary must have been processed for payment no later than September 30 (refer to the monthly payroll schedule for deadlines for data entry into the HR System “Time & Labor” module). Exceptions for payment after September 30 must be approved by the Dean/Vice Chancellor. A total lump sum payment at the conclusion of the entire summer period is discouraged because of the unfavorable tax withholding rate for the employee.
3.5Flexible scheduling of work effort (i.e., working outside normal business hours) during the summer is permitted, but is subject to prior departmental/college approval.
5. SUPPLEMENTAL PAY FOR 9-MONTH FACULTY
5.1 For 9-month faculty, the maximum supplemental pay that may be received during a contract/appointment period (August 16-May 15) is limited to 20% of their base salary (use 1.0 FTE equivalent) of that period. Approval for supplemental pay must be in writing prior to the time the faculty member is to begin performing the additional duties by the department head and dean (or designee.)
5.2 Exceptions to the 20% limit on supplemental pay must be approved by the Dean/Vice Chancellor (not his/her designee) and documented as described in the SOP for Summer Salary and Supplemental Pay for Nine-Month Faculty. unless approved in advance by the Dean/Vice Chancellor (not his/her designee).
5.2 Approval for supplemental pay must be in writing prior to the time the faculty member is to begin performing the additional duties by the department head and dean (not their designees).
[1]NOTE: The National Science Foundation (NSF) limits compensation for senior project personnel to no more than two months of their regular base salary in any one year. This limit includes salary received from all NSF-funded grants. NSF funding may typically be for two months of “summer” salary but in fact applies to ANY two months of salary per year during which the individuals effort is committed to NSF grant activity. Funding in excess of two months may be allowable, provided that NSF (in addition to the Dean/VC) approves in advance. Salary in excess of two months of base pay to senior personnel may not be paid without approval of NSF. NSF approval may be acquired either by (a) including the excess senior personnel salary in a proposal budget and justification or (b) submitting a subsequent request for excess senior personnel salary beyond what was contained in the funded budget justification, to NSF for consideration.