Compensation and PayrollCompensation and Payroll jgastley3 Tue, 05/29/2012 - 15:28
CompensationCompensation jgastley3 Sun, 07/15/2012 - 14:34
Compensation Program Review & ApprovalCompensation Program Review & Approval
The Compensation Program Review & Approval process provides a means of periodic internal management assessment of the Institute’s policies, procedures and practices covering its compensation programs thus ensuring that those programs are properly designed and administered. Compensation programs consist of those covering academic faculty, research faculty and professional/administrative and other staff.
Annually, the Office of Human Resource will coordinate the production of a written report on the condition of the Institute’s compensation program to include those covering research faculty and classified personnel. The OHR Compensation staff will compile and report on comparisons of actual pay practice (salaries being paid) for research faculty management and professional level personnel as well as various levels of classified management and staff to appropriate external markets. The report may also include comparison of additional elements of compensation such as supplemental pay and benefits. This report will be completed in March of each year and cover current conditions as well as those of the previous twelve months. The report will include an executive summary and be addressed to the President, the Provost & Executive Vice President for Academic Affairs and the Executive Vice President for Administration & Finance.
The report will include:
- Background materials on what policies and procedures are currently in place for monitoring and controlling academic faculty, research faculty and classified staff compensation including Board of Regents policies and Board of Regents reporting requirements.
- Comparative data to include compensation survey data covering faculty and staff practices of peer institutions and general industry.
- Analysis and recommendations for adjustments and modifications to existing practices to maintain or improve competitive posture relative to applicable markets.
With regard to compensation paid to academic faculty personnel, the Institute Research and Planning Office will prepare and analyze comparative data on external pay practices for academics which will then be reviewed by Deans and School Chairs.
Upon review, the President in consultation with the Provost & Executive Vice President for Academic Affairs, the Executive Vice President for Administration & Finance and others that may be designed by the President, will assess the status of compensation programs currently in place and take whatever action deemed appropriate to correct, maintain or improve those programs.
Additionally, compensation programs will be subject to review and reporting by the Institute’s Internal Audit organization.
The Office of the President provides oversight and guidance to the Compensation Program Review & Approval Process. Specifically, the President assisted by the Provost & Executive Vice President for Academic Affairs and the Executive Vice President for Administration & Finance periodically review all existing and proposed compensation policies, authorize corrective actions and approve new programs as appropriate. Additionally, the Office of the President may appoint other senior level administrators and faculty to review and advise on programs related directly to their areas.
Extra CompensationExtra Compensation
Institute personnel, to include staff, academic faculty, and research faculty, may be paid extra compensation for performing certain duties in addition to their normal job responsibilities. This Policy is intended to augment applicable Board of Regents (BOR) Policy and Procedures and 1) describes when extra compensation from Georgia Tech may be allowable, 2) establishes a consistent approach to setting compensation for additional duties, and 3) sets limits so such activities do not interfere with the normal work of the employee.
Extra compensation for certain activities may be paid in accordance with the criteria described in the BOR Business Procedures Manual, Section 5.3.2, Extra Compensation.
In accordance with Board of Regents policy, and absent special program approval granted by the BOR, extra compensation may be paid to employees for tasks performed (services rendered) outside their normal business hours for duties not included in the employee’s normal job responsibilities, provided the following three criteria are met:
- The task(s) must be outside of the employee’s regular department. See FAQ section.
- The Extra Compensation Departmental Agreement Form must be completed and routed for signatures by the appropriate department heads prior to commencement of activities of the employee.
- The employee must meet at least one of the following criteria (from the Official Code of Georgia Annotated Section 45-10-25):
- Certified Oral or Manual Interpreter for Deaf Persons
- Registered Nurse
- Licensed Practical Nurse
- Licensed Physician
- Teacher or Instructor of an evening or night course or program (see additional rules applicable to Professional Education Courses included below)
- Professional holding a doctoral or master’s degree from an accredited college or university
- Part-time employee
An employee meeting all three criteria listed above may be paid extra compensation for a task providing:
- The task is not part of their normal job responsibilities;
- The task is outside their department;
- The task is not during their normal job hours or if the task is during their normal job hours and the employee takes annual leave for the portion of time being used for the task receiving extra compensation.
Also, an employee meeting all three criteria listed above may be paid extra compensation for a task for another department during normal job hours if the task is not part of the employee’s normal job responsibilities, and the employee takes annual leave for the portion of time that is being used for the task receiving extra compensation.
Employees that have been determined by the institution to be non-exempt, as defined by the Fair Labor Standards Act (FLSA), and are performing extra duties qualify for overtime pay. Please consult the SSC regarding clarification of overtime pay requirements. Non-exempt employees should be paid at least the overtime rate or more.
Under no circumstances should an employee receive extra compensation for a task while receiving normal compensation for the same time period. Extra compensation does not add to earnings used for retirement calculations, and no retirement deductions are taken from extra compensation pay.
Classified staff and employees who accrue annual leave are not permitted to take consulting leave. Only faculty who do not accrue annual leave may report their leave as consulting for time spent on approved outside professional activities. For more information on Consulting, refer to Georgia Tech Policy 5.6.5 Consulting and 5.4 Conflict of Interest
Employees receiving extra compensation shall be paid said extra compensation through the institutional payroll. Such compensation shall be subject to existing federal and state regulations as to taxability and/or withholding taxes. No compensation, as defined above and paid to employees who are on the institutional payroll, shall be paid as per diem and fees or as stipends.
Cross-school instruction and work for research centers/institutes, when outside one’s home department, typically involves tasks considered part of an individual’s normal job responsibilities and therefore would not qualify for extra compensation. Based on the criteria above, instances where extra compensation for staff is allowable for performing different tasks are not common. Whenever there is uncertainty by the providing department as to whether tasks qualify for extra compensation, the supervisor should seek guidance from their School/unit’s leadership, appropriate Vice President/Provost, Faculty Affairs, or Georgia Tech Human Resources’ Payroll and Total Rewards Department.
Extra compensation does not add to earnings used for retirement calculations, and no retirement deductions are taken from extra compensation pay. Employees receiving extra compensation are paid through the Institute’s payroll. Such compensation is subject to existing IRS regulations as to taxability and/or withholding taxes. No compensation, as defined above and paid to employees who are on the institutional payroll, shall be paid as per diem and fees or as stipends.
University System of Georgia (USG) Dual Employment Agreements are subject to the same general rules governing extra compensation. In these agreements, extra compensation is paid by the providing institution (employee home) to the employee and reimbursed to the providing institution by the institution requiring the service (the host institution). Payment for the performance of an employee’s normal job duties is typically reimbursed to the home institution by the host institution using the employee’s standard base rate of pay plus applicable fringe benefits. Not all Dual Employment agreements involve extra compensation.
In order to ensure additional duties do not interfere with the performance of normal job responsibilities, total extra compensation for both sponsored and non-sponsored activities shall typically not exceed 30% of the employee’s expected regular annualized compensation. In unusual cases when extra compensation is anticipated to exceed the 30% threshold in a fiscal year, additional justification and advance approval by the Provost or appropriate Executive Vice President depending upon the employee’s home department/unit is required. Compensation paid for sponsored activities must be consistent with applicable external rules, regulations, and award terms and conditions.
Additional Requirements - Professional Education Courses
Professional education activities should be in compliance with the Faculty Handbook: Section 4.6, Georgia Tech Professional Education. GTPE is the Requesting Department for all professional education activities, and compensation paid for professional education activities shall be established based on the following criteria:
- Compensation paid for a sponsored activity must be consistent with the terms and conditions of the award and Federal or other rules applicable to the sponsoring agency or organization.
- Absent sponsor restrictions, compensation rates should be in line with salaries paid to faculty in the discipline being taught.
- Rates may be adjusted based on the type of course (e.g., non-credit courses vs. professional masters).
- Rates should be expressed as a lump-sum payment for the course being taught rather than as an hourly rate.
- Extra compensation may neither be contingent on a program’s revenues nor based on a percentage of income generated by the activity.
- Prior to extra compensation being paid, the appropriate department head must complete, sign, and return the Departmental Agreement Form (DAF) to GTPE. See the Flow Chart for DAF process guidelines. The department head is responsible for ensuring compliance with this policy in terms of allowableness, individual amounts, and rates.
This policy applies to Institute personnel to include staff, academic faculty, and research faculty, who, by virtue of their education, training or experience are selected to perform additional duties and in accordance with other BOR applicable policies.
This policy does not address additional or specific policies related to Summer Salary Arrangements, External Consulting by Faculty, Dual Appointments (formerly Joint Staffing), Moonlighting, Temporary Assignments, or Acting/Interim Title pay adjustments. For purposes of this policy, prizes and awards received are not considered extra compensation and are not considered part of an individual’s regular annual salary. Those matters are governed by separate policies and rules. See Section 10 – Related Information.
This policy does not apply to Overloads for Academic Faculty. Board of Regents Academic and Student Affairs Handbook: Section 4.10 Faculty Overloads and Instructional Staff Responsibilities discourages the payment of extra compensation for overloads. The policy advises that when possible, workload adjustments should be made to encompass the additional duties. If the school and college determine that a workload adjustment cannot be made, a request to pay overload compensation should be submitted to the Office of Faculty Affairs. Full-time faculty members with academic status, who are budgeted at 100% time for the full year may qualify for overload compensation. Approval must be obtained from the School Chair, Dean, Provost, and President prior to the start of the assignment
|Normal Job Responsibilities||The duties outlined in the job description or work statement of a position currently held by an individual (employee).|
|Professional Education Activities||The instruction, laboratory supervision, design, marketing, coordination, evaluation, and other effort that faculty and administrators participate in to conduct Professional Education (GTPE) programs.|
|Requesting Department||The academic department or non-academic unit desiring to obtain or facilitate the services of an individual. If the details of the instance are known by the requesting department, it can describe why the services of the individual are needed on the Departmental Agreement Form. The requesting department may also describe why the instance is in the best interest of the Institute on the DAF.|
|Providing Department||The academic department or non-academic unit employing the individual. When an individual initiates the instance with extra compensation, the individual/providing department should complete the part of the DAF describing the details of and the reason why the services are needed. The supervisor of the individual being requested must provide a written statement that the individual is available to provide the desired services and the performance of the services will not detract from the individual’s normal job responsibilities.|
|Moonlighting||Employees may pursue a variety of endeavors for financial gain that are not directly related to the person’s field or discipline. These efforts are part of the non-faculty member’s private life and do not come under Institute regulation for this policy. Such endeavors may be pursued only after the primary commitment to the Institute has been fulfilled.
|Departmental Agreement Form||The Departmental Agreement Form (DAF) should be completed for each instance creating the need for extra compensation by the employee’s home department (Providing Department) and the department receiving the services (Requesting Department) of the employee prior to provision of any services by the employee. Providing Department typically initiates the DAF process. If additional approval is required for an instance causing an individual’s total extra compensation to exceed the 30% threshold in a fiscal year (July 1 through June 30), advance approval from the Provost or appropriate Executive Vice President shall be obtained and noted by signature at the bottom of the DAF. If similar instances, creating the need for extra compensation, are expected to occur over a period of time, a DAF may be completed for a period of time, rather than each instance (up to quarterly or a three-month period). For example, multiple short courses are going to be taught.|
Frequently Asked Questions:
May I receive extra compensation for services performed outside my normal working hours for Georgia Tech affiliates that are separate 501(c)(3) organizations, such as the Athletic Association?
Yes, faculty and staff may work outside their normal working hours for Georgia Tech affiliates such as the Athletic Association and receive compensation for those services. This type of compensation is generally considered a type of “moonlighting”, is allowable, and would not count towards the 30% threshold.
Are there exceptions to the three criteria above with regards to qualifying for extra compensation?
There are a few situations where extra compensation is allowable even though the three criteria above have not been met. For example, some academic programs are allowed to pay faculty for instruction even though the faculty member may be performing the additional duties for their department. Examples include the Executive MBA, Evening MBA, GTPE Professional Master’s, and the Online Master’s Science – Computer Science. In these cases, the program has received approval from an authoritative body for extra compensation, the work is carried out in addition to a normal full load, the program generates sufficient tuition/fees in direct support making it self-sufficient and the additional duties are not so heavy to interfere with an individual’s regular duties.
Can I perform work for another Georgia Tech department and receive extra compensation if the funding source is a non-Georgia Tech funding source, such as the Georgia Tech Foundation?
Only if the three criteria mentioned above are met. The funding source is not typically a determining factor on whether extra compensation is allowable.
Do retirees classified as “Retired but Working” qualify for extra compensation?
Pay rates for Retired but Working (RBW) employees should be established and approved based on specific duties to be performed during the stated period. For this reason, RBW employees are not eligible for extra compensation. For additional information about RBW reemployment, please visit the Retirees reference data on the GTHR website at: http://ohr.gatech.edu/employment/hiringtalent/retirees
8.1. The Providing Department is responsible for initiating and completing their part of the Departmental Agreement Form.
8.2. Working with the Georgia Tech Human Resources as necessary, the Providing Department is responsible for ensuring the employee’s extra compensation does not exceed the 30% threshold defined in this policy in any single fiscal year without additional approval as indicated below, point 8.3.
8.3. The Providing Department is responsible for attaching additional justification with the DAF and seeking advance signature approval by the Provost or appropriate Executive Vice President to exceed 30% of the employee’s annual, regular compensation.
Employees who receive extra compensation contrary to this policy may be in violation of O.C.G.A. Section 45-10-23 relating to unlawful conflicts of interest. Employees authorizing or receiving extra compensation in violation of this policy may be subject to discipline as provided in the Faculty Handbook and the Administrative Policies of the Institute.
The Institute’s Payroll Office along with the Division of Administration and Finance will periodically monitor extra compensation activity to ensure compliance in terms of allowableness, administration, and amounts/rates.
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at:
|08/15/2018||Office of Human Resources||Clarify Policy|
|12/2/2016||Office of Human resources||New Policy|
Hours of WorkHours of Work
Georgia Tech has established a standard workweek of forty (40) hours for regular full-time Classified (biweekly) personnel. Biweekly full-time employees are allowed to work overtime with supervisory approval. Employees described above are covered by the provisions of the Fair Labor Standards Act in this manual under Compensation Administration, Section 4.0, Fair Labor Standards Act (Overtime for Employees), Procedure No. 4.9.
Research Faculty Compensation AdministrationResearch Faculty Compensation Administration
The Georgia Institute of Technology is committed to a Compensation Program for research faculty employees that is externally competitive, internally equitable, promotes retention of good performers and encourages exceptional performance. To this end, the program has been designed to attract and retain the quality and quantity of research faculty personnel required to collectively meet Institute objectives.
Compensation Administration Responsibilities
The Research Faculty Employment unit of the Office of Human Resources (OHR) will be responsible for:
- Developing and administering compensation policy and procedures applicable to research faculty personnel.
- Monitoring and reporting on external markets relative to internal compensation practices.
- Reviewing pay related transactions for research faculty personnel to ensure consistency with published policy.
- Researching and analyzing published compensation survey data to ensure that proposed salary offers to candidates for open research positions as well as the pay practices for current research faculty are reasonable.
Starting Pay Rates
Education and Job Related Direct Experience
Each open research faculty position is posted with specific requirements for level of education and the number of years of direct job related experience.
Assessment of an individual's qualifications begins with a review of the resume and application to determine the appropriateness of the proposed title and to determine if job qualifications are met.
The results of an assessment of an individual's education, skills and experience as well as job responsibilities ultimately determine the pay rate that will be offered upon employment.
In determining the appropriateness of a salary offer, data from the most recent Watson Wyatt Survey Reports is referenced. These reports cover professional, middle and top management compensation paid in various markets., The data is compared to the proposed candidate’s degree level, degree major, and years since first degree, experience, knowledge, and responsibilities of the position being filled.
Starting pay rates for new employees as well as those being promoted to a new position are normally set between the 25th percentile, and 75th percentile of survey data reported based on that individual employee’s credentials. The positioning within that range is dependent upon the amount of directly related job experience beyond the basic job requirements that the incumbent brings to the job, as well as market demand for that individual's expertise and credentials.
Processing Offer Rates
A candidate's proposed offer rate will be included in the hiring package when it is forwarded by the hiring department/HR Representative to OHR. The offer rate will be reviewed by OHR – Research Faculty Employment. This review will determine whether the offer is within the hiring range as defined in this policy and appropriate to the candidate’s education and experience or if it exceeds those guidelines.
If OHR – Research Faculty Employment determines that the offer rate is within the guidelines, the hiring package is routed to the Vice Provost for Research and Dean of Graduate Studies for approval. If not, the hiring package is forwarded to OHR - Compensation for further review.
OHR – Compensation will conduct an analysis of the offer relative to guidelines and special circumstances, usually including a discussion with the hiring department. OHR - Compensation will then document the analysis and forward to OHR – Research Faculty Employment with recommendation for approval or disapproval.
OHR – Research Faculty Employment notifies the hiring department that either an exception is in order or that there appears to be no justification for the rate exceeding guidelines. Any appeals from the hiring department are routed to the Associate Vice President - Human Resources for disposition with the department and the Vice President for Research and Dean of Graduate Studies.
Offers should not be extended until all required approvals have been obtained. Every effort will be taken to ensure the review process occurs in a timely manner.
Participating in and analyzing the results of compensation surveys is the primary means of monitoring the competitiveness of pay rates for research faculty personnel. Through this process, pay rates of research faculty personnel are systematically compared to appropriate external markets on an annual basis. The purpose of these comparisons is to ensure that the Institute’s pay practice is maintained at competitive levels and where this is determined not to be the case, to take corrective action as appropriate.
Compensation comparisons are accomplished through a process of job mapping. Research faculty employees whose job assignments in terms of discipline, educational level, work experience and work assignment are similar to or essential the same as those contained in external survey organizational models and job descriptions are matched up or mapped. This process can apply to several research faculty personnel being mapped to a single survey job description or an single employee’s job duties mapped to a single survey job description.
As these matches are made, the pay rates of Institute research personnel are compared to the median of the survey job match within an appropriate market and differences noted. In this process, care is taken to ensure, to the extent possible, the appropriateness of the market to which comparison is made. Given that the source for attracting new and experienced research personnel may cover multiple geographic areas and organizational types, the national market for all survey participants is generally referenced for comparison purposes. Additionally, the compensation comparison process may include supplemental analyses related to additional cash compensation and benefits values associated with research personnel relative to comparable external market data. The results of the comparison process is summarized in tabular and report form and incorporated in the written report on Institute compensation referenced in Section 4.2 – Compensation Program Review and Approval.
A promotion normally occurs during the annual research faculty peer reviewed promotion process. The annual promotion process is scheduled in conjunction with the beginning of the fiscal year (July 1). In any case, an established set of hiring or promotion criteria determines the research faculty title category, i.e., research engineer/scientist/technologist/associate, and level, i.e., I/II/Senior/Principal, to which the faculty member may be elevated.
A merit adjustment may occur as a result of the demonstration of performance relative to job expectations as determined through an annual evaluation. The merit adjustment funding is a result of the actions of the General Assembly and Board of Regents of the University System of Georgia. Merit adjustments are awarded on an annual basis following legislative and Board of Regents approval. There are no strict guidelines regarding the amount of merit increase that should be associated with a given level of performance. However, it is strongly encouraged that significant differences in performance should yield significant differences in reward.
A lateral transfer occurs when an employee is moved to a research faculty position with the same level as the one previously assigned. The reasons for such action are: 1) a simple transfer from one position to another of the same level, particularly when funding ceases to exist in the position previously assigned, 2) the employee has bid for a research faculty position of the same level they currently occupy but in a different department 3) placement in a temporary assignment. Any requests for lateral pay adjustments should be referred to the Office of Human Resources prior to completing a PSF.
Normally pay adjustments are not made as a result of a lateral transfer. Only in cases of extenuating circumstances will an adjustment be considered.
Other Pay Adjustments
Other pay adjustments include those for market equity, increased responsibilities and interim assignments. Requests for these type adjustments should be made in memo form to the Office of Human Resources and include an explanation of why the adjustment is necessary and, in the case of market equity, comparable survey titles matching the position in question.
Processing Pay Adjustments
Processing Pay Adjustments (other than annual merit)
Pay adjustments other than merit adjustments include transfers to interim positions, market adjustments, or acceptance of additional responsibilities and duties, etc.
For these pay adjustments a Personal Services Form (PSF) and justification letter should be completed by the individual's supervisor, approved by appropriate unit management and routed to OHR – Research Faculty Employment.
OHR- Research Faculty Employment will conduct an analysis of the requested adjustment relative to job responsibilities, market and internal equity and may require review by OHR – Compensation. Approval is then sought from the Office of the President, notification sent to the Board of Regents and forwarded to Payroll for processing.
For pay adjustments that do not appear to be supported by market survey data, OHR- Research Faculty Employment or Compensation will contact the unit's Human Resources Representative and discuss the proposed adjustment. This will take in to account not only the market data but also the individual’s credentials and experience. Adjustments that can not be resolved at this stage require final resolution by the Associate Vice President of Human Resources and if necessary, the Vice-Provost for Research as designee for the President.
Pay adjustments are not to be discussed with the employee until all necessary approvals are obtained.
Processing Pay Adjustments (annual merit)
Annual merit adjustments are not processed using the PSF. The Budget Office is responsible for gathering, monitoring and routing documentation associated with these adjustments to Payroll.
Communicating Annual Merit Pay Adjustments
The supervisor should notify the employee in writing that the adjustment is forthcoming. This should occur no later than the effective date of the increase. A copy of the memo should be sent to OHR-Records for inclusion in the employee's personnel file.
Staff Compensation Administration PolicyStaff Compensation Administration Policy
Georgia Tech is committed to providing a competitive staff compensation program that will attract, retain, motivate, and reward a qualified, diverse workforce at all levels. This Policy outlines staff compensation requirements and is not intended to be a contract of employment, express or implied, between any employee and Georgia Tech.
Georgia Tech strives to ensure that compensation decisions are made as objectively as possible without consideration of a person’s race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age, disability, or genetic information. Employee compensation administration will be supported by reliable market data, internal equity reviews, and performance evaluations. Implementation of policies and procedures pertaining to payment of salaries is contingent upon the availability of funds.
General Considerations for All Compensation Actions
Salary and wage adjustments will generally be awarded to employees at Georgia Tech upon promotion to a higher level position, upon reclassification to a higher level position, when an equity, market or administrative adjustment is deemed necessary, and on an annual basis provided performance warrants the adjustment. The annual increase will be in the form of a merit increase and developed in conjunction with, and in adherence to the University System of Georgia’s (USG) guidance. Equity and market adjustments may also be developed in conjunction with the budget development process. For all compensation and Pay Grade changes, the unit Human Resources representative and department supervisor will collaborate to develop an appropriate salary recommendation, based on factors such as an employee's skill, knowledge, experience, and performance, criticality of the role, budget, and market data. All adjustments are contingent upon available funding and must be developed in consultation with the unit’s Human Resource representative and GTHR Compensation.
The effective dates of the compensation action will be aligned with a future compensation period corresponding with the position’s compensation frequency.
Exceptions to this policy may be approved in unusual circumstances by the head of GTHR Total Rewards and the AVP of Human Resources, with the support of the appropriate EVP, or Office of the President where the approval is given in writing and such exception does not violate other policies within Georgia Tech, the USG, or related laws.
Communicating Compensation Adjustments
Supervisors must not commit to any change in salary or compensation of an employee without appropriate departmental, Institute, or USG level approval. Georgia Tech is not bound to any agreement made by a supervisor who has not obtained proper approvals.
Maximum Salary Administration
All Georgia Tech departments must adhere to the USG Maximum Salary Administration guidelines in all compensation actions.
Georgia Tech may establish incentive compensation programs consistent with state law, USG Policy, and applicable procedures, however, institutional incentive compensation programs must be reviewed and approved by the USG’s Office of Fiscal Affairs and GTHR.
Starting salaries for external hires are determined based on the applicant’s prior experience, skills, or education, directly compared to other employees that are similarly situated at Georgia Tech. For starting compensation purposes, external hires include transfers from other USG institutions. Temporary and student workers transitioning to a regular staff or faculty role will be subject to salary increase administration rules for current employees.
Internal and External hires must start at no less than the minimum of the salary range of the Pay Grade for the position into which they have been hired.
Starting compensation for Internal and External hires that is above the midpoint of the salary range of the Pay Grade must gain additional approvals from GTHR.
Georgia Tech’s compensation programs are designed to recognize, and reward staff members based on individual performance. Merit increases are typically authorized at the beginning of a fiscal year and are subject to salary limitations and guidelines established each fiscal year. Increases reflect each employee’s performance as evaluated by their supervisor and will generally be distributed on a percentage basis around the average percentage increase as determined by USG guidance. Merit salary increases that exceed the range established by the USG salary administration statement must be documented on an individual basis and must be approved according to the guidelines for that year’s merit process.
Promotion or Reclassification Increases
Promotions may occur as a result of reclassification, reorganization, or through competitive recruitment. When an employee is promoted or reclassified to a position in a higher Pay Grade, the employee will normally be awarded a promotional or reclassification increase. Determinations of the actual increase will consider relevant factors such as internal compensation equity and the individual’s qualifications and experience for the position. Not all promotions will result in a compensation increase.
Promotional increases above 9.9% percent, or the minimum of the new compensation range, will require additional justification and review and approval by GTHR. Increases will be capped at the new Pay Grade compensation range maximum.
Newly promoted or hired employees are generally ineligible for a subsequent promotion or a lateral move (unless within their own unit) until completion of one year of continuous service in that position. Exceptions to this are:
- The individual’s current work is to be curtailed.
- All available employees with at least one year of service have been considered and rejected for the position.
- Situations in which the leadership of two units mutually agree to a transition to the benefit of Georgia Tech.
No compensation increases are allowed with a demotion. Regardless of where the individual is in the new salary range, responsibilities, internal equity, and budgetary considerations will be considered and may result in decreased compensation in the new salary range Pay Grade.
If the demotion is voluntary (e.g., applying to a job in a lower grade), and the employee’s current salary is within the new salary range, no change is necessary. If the current salary of an employee is more than the new salary range maximum, their salary will be decreased to no more than the maximum salary range for the new job on the effective date of the new job. If the demotion is involuntary, and the employee’s salary is more the new salary range maximum, the salary shall be immediately decreased to a level within the salary range of the new grade. Involuntary demotions can also occur when a job is reassigned to a new Pay Grade due to a reorganization. Responsibilities, internal equity, and budgetary considerations will be considered and may result in a salary placed lower in the new salary range due to a reorganization. In these instances, the individual's salary may initially remain the same, but must transition to the Pay Grade salary range of the new job within one (1) year.
Equity and Market-Based Salary Adjustments
Market adjustments do not occur in conjunction with a change in title, grade, or FLSA status.
Official Georgia Tech sanctioned salary survey data and the employee’s personnel record, experience, and credentials will be reviewed by GTHR Compensation. Rationales for considering an Equity and/or market adjustment include:
- Consideration of a more appropriate alignment between the salaries of similarly situated employees performing work at the same family, sub-family, career stream and career level, with similar levels of experience, background, and performance;
- Consideration of a more appropriate alignment between the salaries of a supervisor and their direct reports;
- Consideration of a more appropriate relationship between the salaries of existing employees and the relevant market. Any adjustment that is given to bring employees in line with the external market is subject to internal equity. Adjustments will not be made if differences are explainable based on qualifications, type or length of experience (both internal and external to the Georgia Tech), the work itself, and/or performance and productivity.
In order to correct an administrative oversight, and subject to funding availability, the AVP – Human Resources or his/her designee may approve an in-range adjustment to an employee’s rate of compensation.
Retention of Employees
Counteroffers from Georgia Tech should be rare, and in all cases, will require approval of the Vice Provost, Vice President, Dean, similar level title, or higher (depending upon circumstance) and the AVP of Human Resources or designee.
Internal Offer and Counteroffer:
- If approved, the employee's current department may make a counteroffer up to the hiring department's salary offer for a similar level role, with prior approval at the organization level.
- Neither the employee's current department nor the hiring department can offer more than the hiring department's original salary offer.
External Offer and Counteroffer:
- Employee’s current Georgia Tech department will determine if a counteroffer will be made following receipt of a signed offer letter or email from an authorized representative of the potential external employer.
- No counteroffer may exceed the amount of the external offer.
- The current Georgia Tech department can negotiate with the individual, offering up to the amount approved by GTHR.
- If external offer changes, the same process for approval of salary rate (described above) will still apply.
Georgia Tech recognizes the need to assign additional responsibilities of another position to an employee on a temporary basis and to make interim appointments. A supplemental compensation increase does not include a change in position or title and may be made when a significant change in duties and responsibilities occurs. The supplemental compensation increase should be consistent with additional responsibilities assigned and within salary guidelines. The compensation increase should generally be at least the minimum of the salary range for the position for which the interim appointment is made. The former rate of compensation (plus any applicable supplemental earned during assignment) will be re-assigned when the interim appointment is completed. Information regarding interim appointments can be found in the Georgia Tech Service Now Human Resources Knowledge Base.
No compensation increases are allowed with a lateral transfer unless disparity in compensation requires an Internal Equity adjustment. Increases will be capped at the compensation range maximum. The transfer of an employee from a position at one institution within USG to a position at another USG institution or to or from the University System Office is an external transfer. Since USG institutional compensation practices may differ due to market conditions, the transfer may be to a position at a different compensation range. For compensation purposes, the external transfer is considered an external hire. Additional Human Resources policies regarding external transfers may apply (see Section 10 for related policies).
Timing of Compensation Adjustments
No commitments regarding the effective date for compensation adjustments shall be made to employees until authorization is received from the appropriate department budget official and GTHR. All requests should be submitted and processed in advance of the effective hire date or status change date. In all cases, the required adjustment should be effective with the beginning of the next compensation period after written authorization has been received. Retroactive compensation adjustments impose significant risk and costs within Georgia Tech and USG. Retroactive adjustments in funding sources (which do not impact compensation rates or classifications) are not impacted by this change.
This policy applies to all staff employees at Georgia Tech. This policy does not apply to academic faculty, research faculty, affiliates, or temporary employees.
A shift of an employee to a lower Pay Grade, rank, class, or position.
Internal Equity exists when employees at an organization perceive that they are being rewarded fairly according to the relative value of their jobs.
Market Adjustments are salary adjustments for an employee or group of employees that have fallen behind in base salary as compared to similar positions on campus and/or in the external market.
Georgia Tech groups jobs with similar external value in to Pay Grades. Within the Pay Grade there are compensation ranges and tiers that reflect the minimum and maximum pay. All increases will be capped at the compensation range maximum.
A Promotion is the elevation of an employee to a new position, with essential responsibilities that are significantly greater than the current position, and a higher Pay Grade.
A change in a role that results in the employee and/or position being assigned to a different job title and job code.
Georgia Tech groups job grades with similar characteristics. There are five Structure categories at Georgia Tech. Click here to learn more.
The AVP – Human resources shall provide guidance to management on appropriate application of the policy; ensure that appropriate processes and Institute level policy is in place to facilitate fair and equitable evaluations of requests to extend offers above the minimum of a salary range; and ensure requests are properly evaluated and administered in accordance with policy and applicable federal and state laws.
Georgia Tech Human Resources Compensation Department
GTHR’s Compensation team is responsible for monitoring consistent application and interpretation of this policy, and ensures appropriate approvals are received in compliance with USG Policies and Human Resources Administrative Practice (HRAP) Manual.
Supervisors are responsible for seeking approval from unit Human Resources representatives and/or GTHR for all compensation adjustments. Additionally, supervisors must ensure no communication regarding compensation is shared with employees prior to approval.
To report suspected instances of ethical violations, please visit Georgia Tech’s Ethics Helpline a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
|10/2020||Human Resources||Editorial updates|
PayrollPayroll jgastley3 Sun, 06/03/2012 - 09:43
Employee Awards and PrizesEmployee Awards and Prizes
Prizes and awards (cash and non-cash) made to employees are considered wages. In accordance with the Internal Revenue Service regulations, awards and prizes are subject to FICA, FUTA, and federal and state income tax withholdings. All awards and prizes given to Georgia Tech employees must be paid and/or reported through the Georgia Tech Payroll Department, to ensure that taxes are properly withheld.
- If sufficient funds are available, the employee taxes may be paid in addition to the dollar amount awarded to the employee.
Example: Employee Award to be paid (Net) $1,000.00 Employee Taxes (Fed 25% + State 2% + FICA 7.65%) $ 530.22 Employer Tax (FICA 7.65%) $ 117.06 Total Expense ($1,530.22 EE + 117.06 ER) $1,647.28
- If the employee will be responsible for paying the taxes:
|Employee Award to be paid||$1,000.00|
|Employee Taxes **(award amount x 7.65% + Fed 25% + State 2%)||$ 346.50|
|Net Employee Award||$ 653.50|
|Employer FICA**||$ 76.50|
|Total Expense ($1,000 EE + 76.50 ER)||$1,076.50|
**Note: If the employee has reached their social security annual maximum, there will only be 1.45% medicare tax charged.
|Employee taxes are withheld as follows:|
|Federal 25.00% FICA (6.2% SS + 1.45% Medicare)||7.65%|
< $8,000 – 2%
8 – 10,000 – 3%
10 – 12,000 – 4%
12 - 15,000 – 5%
> 15,000 - 6%
All recipients (employee, student employee, and non-employee) should be submitted on the Awards and Prizes form. Forms may be obtained on line http://www.ohr.gatech.edu/; under Payroll (https://techworks.psguest.gatech.edu:5963/psp/paprodg/EMPLOYEE/EMPL/e). The Payroll Department will verify the employment status. If a recipient is not an employee, the initiating department will be notified to pay the recipient through AP. Prizes for non-employee recipients should be submitted on AP check request form.
A copy of the Awards and Prizes form is available as a reference for the following instructions. This sample form has numbers written on it which correspond to the numbers in the instructions below.
Instructions for completion of the Awards and Prizes form:
- Enter the name of the award/prize event.
- Enter the name and phone number of the award coordinator.
- The form must be signed and dated by an authorized department administrator.
- Enter the award/prize presentation date.
- Enter the name and phone number of the person responsible for check pick-up.
- Enter the date needed and if it is to be a check or deposited with their next payroll.
- Check the “Gross Up” box if the department wishes to absorb recipient’s taxes (approx. 34.65%)
- Enter the name of the award/prize recipient.
- Enter the recipient GT ID and Employee ID.
- List the purpose of the award/prize.
- Enter the $$$ amount of award payment
- Enter the estimated department’s total expense of the award including any employer portion of the FICA (7.65%), and the employeeportion of taxes if the department is willing to pay for them. (Please refer to the gross-up examples above for calculation).
- Enter GT peoplesoft project #/name. No State Fund is allowed.
- Enter GTF/GTRC Project # (Funding Source).
The department should submit the form to Accounting Services for review if the funding source is Georgia Tech Foundation. If the funding source is Georgia Tech Research Corporation, the form should be approved by Grants and Contracts. After the form is approved, it will be forwarded to Payroll for check processing.
Off-Cycle Payroll PolicyOff-Cycle Payroll Policy
This policy outlines Georgia Tech requirements for Off-cycle Payroll disbursements in compliance with University System of Georgia (USG) payroll requirements.
Pay changes and timesheets submitted after the On-cycle Payroll deadlines will be processed on the next On-cycle Payroll, unless conditions for an Off-cycle Payroll disbursement are met.
Standard Off-Cycle Payroll Disbursement
A standard Off-cycle Payroll disbursement is a payment to an employee earlier than the next established On-cycle Payroll. Off-cycle disbursements are an exception to regular payroll processing and should never be substituted for the timely processing of employee pay. The USG establishes the Off-cycle Payroll calendar annually and Georgia Tech Off-cycle Payroll dates will typically run between each regularly scheduled Bi-Weekly Payroll disbursement.
Off-cycle disbursements should only be requested when a true financial hardship exists making it necessary for the employee to receive a disbursement before the next On-cycle Payroll.
Off-cycle requests must be submitted by the Thursday before the Friday On-cycle Bi-weekly Payroll disbursement pay date. Off-cycle disbursements cannot be used to pay an employee before work is performed. Advance pay may not be issued to an employee under any circumstances.
Frequency of Payment and Timing:
Off-cycle disbursements are distributed every other Friday, opposite of the Biweekly On-cycle Payroll disbursement schedule.
A request for Off-cycle disbursements should meet at least one of the following criteria:
- Paycheck reversal due to employee overpayment,
- Administrative error within GTHR payroll process,
- The employee has received less than 50% of their wages,
- The employee is owed 10 hours or more,
- The employee submitted their hours on time, but the time approver did not approve the hours on time,
- The employee has been involuntarily terminated.
Off-cycle disbursements should not be processed for the following reasons:
- Retroactive pay,
- The employee is owed less than 10 hours,
- Employee fails to enter and submit their time report on schedule,
- Supplemental pay — if the employee was paid for their regular wages,
- Failure to submit timely Vacation & Sick leave requests,
- Vacation pay out.
Emergency Off-Cycle Payroll Disbursements
Emergency disbursements are a subset of Off-cycles Payroll disbursements requiring pay date earlier than the established Off-cycle pay dates and shall only be processed in limited situations.
Emergency payments will only be processed if the below criteria are met:
- Undue hardship is placed on the employee because their respective pay has not been routinely issued,
- The underpayment was due to no fault of the employee,
- The request is approved by Georgia Tech’s Executive Vice President Administration and Finance,
- More than one emergency request for an employee, in any given calendar year, must be approved by Georgia Tech’s President as per USG Business Procedures Manual 5.3.8.
Emergency payments are issued as same-day Automated Clearing House (ACH) payments via direct deposit to the employee’s bank account. All requests for emergency payments must be submitted to the USG Shared Service Center (SSC) by the deadline as indicated on the established Off-cycle Payroll processing calendar. Requests not received by this deadline will be added to the next emergency payroll processing run.
Procedures for requesting an Off-cycle Payroll disbursement can be found in the Human Resources knowledge base at https://services.gatech.edu. Departments can also submit a request for an Off-cycle disbursement via ticket at that same location.
Additional information is available in the Human Resources knowledge base at https://services.gatech.edu. Questions not answered in the knowledge base can be submitted via ticket at the same location.
This policy applies to all units of Georgia Tech.
The regularly scheduled biweekly or monthly payroll dates. These dates can be found here.
Any payments made outside of the regularly scheduled on-cycle payroll process. These dates can be found here.
Payroll for hourly employees that is disbursed every other Friday. These dates can be found under Payroll Schedules here.
Payroll for salaried employees that is disbursed on the last business day of the month.
GTHR Payroll Office
The GTHR Payroll Office is responsible for working with the SSC of the USG to ensure that all Institute employees are paid in a timely manner. To facilitate this, a time schedule for the various payrolls has been developed for the calendar year and is available online at https://hr.gatech.edu/payroll.
Georgia Tech College, Department, and/or Office
It is the responsibility of each college, department, and/or office to establish procedures and controls that will ensure compliance with established time frames.
Off-cycle requests will be denied if conditions of this policy are not met. If denied, pay will be disbursed on the next On-cycle Payroll disbursement.
To report suspected instances of ethical violations, please visit Georgia Tech’s Ethics Hotline a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
Regulations and GuidelinesRegulations and Guidelines
This procedure provides information regarding Internal Revenue Service, State of Georgia, and Georgia Tech regulations.
Payment to Employees for Personal Services
According to Common Law Rule:
"Every individual who performs services subject to the will and control of employer, both as to what shall be done and how it shall be done, is an employee for purposes of all federal payroll taxes. It does not matter that employer permits employee considerable discretion and freedom of action, so long as employer has legal right to control both method and result of the services."
Refer to the Accounts Payable Procedure Consulting - Attachment C to review the 20 factors developed by the Internal Revenue Service to aid in determining whether there is an employer-employee relationship. Students receiving Fellowships that require them to perform services should be aware that this income may be taxable.
To ensure compliance with the Fair Labor Standards Act, regulations of the Internal Revenue Service, and laws of the State of Georgia, Georgia Tech will purchase services from employees only through the payroll system. This arrangement precludes any type of contractual agreements with any University employee for payment of services other than through established payroll procedures.
Payment for personal services will be made on regularly scheduled pay dates only. State regulations prohibit advance payments.
The standard workweek for non-administrative classified employees at Georgia Tech is 40 hours, from 12:01 a.m. Sunday through 12:00 midnight on Saturday. If it is necessary for an employee's workweek to exceed 40 hours, the overtime must be pre-approved by the department head.
Payment for Overtime
Any non-exempt classified employee of Georgia Tech (as defined by the Fair Labor Standards Act) who is required to work more than 40 hours during a workweek will be paid at one and one-half times his/her standard rate for all work in excess of 40 hours, unless compensatory time is authorized. If an employee is paid on more than one account and the combined hour for the workweek exceed 40, the total pay will be prorated to each account based on the percentage of time reported per account to total time reported each workweek.
The Board of Regents Personnel Policies Handbook, Section II--Classified Employment states:
"In lieu of payment for approved overtime work, compensatory time may be granted at the rate of one and one-half hour of compensatory time for each hour of overtime work. Approved compensatory time is subject to a maximum accumulation of sixty (60) hours and must be expended by the end of the succeeding calendar quarter."
Participation in research projects (Human Subjects)
Payments under $75 per participant will be considered de minimis and not reported on a W2, 1042S nor 1099 Misc. Participants must pass the Selection of Human Subjects criteria:
- Full or part time employee of the Institute,
- Full or part time undergraduate student,
- Full or part time graduate student, provided the graduate student’s funding department agrees that the student may participate in the research.
- Students who are on financial aid assistance,
- Non-Institute affiliated individuals.
Salary Overpayment Repayment ProcessSalary Overpayment Repayment Process
A Salary overpayment condition arises when an employee has been compensated for more than their approved salary. This can occur due to late receipt of or late processing of the Personal Services Form (PSF). The causes for the overpayment include, but are not limited to: Termination Change in Percent Time Change of Pay Rate Change in Leave Status
Any salary overpayment paid to an individual must be refunded to the Institute immediately. If not, the following procedure will be initiated.
Individuals Affected By This Policy
Employees paid through the Institute payroll department, active or terminated.
When PSF's are received in the Payroll Department, the effective date of the action is reviewed by payroll staff. If the action date has passed, a further review of payroll processing is initiated to determine if an overpayment appears to exist. The Payroll Department then calculates the salary overpayment and validates the existence with the department. Once acknowledged, a journal entry noting the employee name will be processed to establish the salary overpayment receivable. The debit entry will posted GT/FUND10010/129120/ and credit entry will be posted to the department project and account originally charged. If the overpayment was made to a student employee, the Bursar's Office will be notified and a “financial hold” will be placed on the student's account. The hold will prohibit the student from registering for future terms, receiving transcripts and receiving a diploma.
Payroll will send a certified letter to the employee requesting immediate repayment (all communications to the employee will be copied to the department). When received, the repayment will debit the cash account GT/FUND/10010/118000 and credit the salary overpayment receivable account GT/FUND10010/129120. If the overpayment was made to an active employee, the next pay check will be decreased by the amount of the overpayment. If the overpayment was made to a terminated employee, a check will be immediately forwarded to the Payroll Department.
If the repayment from the next available pay check would create a financial hardship, and there is no indication of fraud, Payroll may establish a repayment plan not to exceed 60 days.
To maintain compliance with the Federal and State Department of Labor laws, Payroll will not pay an employee less than the current minimum wage, even if it extends the repayment period past the stated 60 days.
If the overpayment was made to a terminated employee who has an Annual Leave Balance, the overpayment amount will be deducted from the employee's annual leave payout. The remaining leave balance will be paid to the terminated employee with the next available payroll process for their pay group.
If the employee does not respond to the first communication, a second certified letter will be mailed in 30 days. If there is no response to the second letter, a third certified letter will be mailed at the 60 day mark. If at the end of 90 days, there is still no response, the employee name and salary overpayment amount will be sent to the Bursar's Office to be placed with a collection agency. The Bursar will debit the Salary Overpayment Bursar AR account GT/FUND10010/128001 and credit the Payroll salary overpayment account GT/FUND10010/129120. If the overpayment is for an employee in the Georgia Tech Research Institute (GTRI) or Auxiliary Services, the debit entry to the receivable (account 128001) will be posted in the corresponding fund code for that unit (i.e. FUND11021, FUND12210, FUND12250, etc.). At the time the account is placed with collections, the financial reporting Division for the unit with the overpayment (College or Major Administrative Division) will receive a decrease to their general operations budget for the same amount. If collection efforts are successful, the Division may seek additional budget authorization through the standard budget process for the net amount collected by GT if material. In lieu of a decrease to their general operations budget, GTRI and Auxiliary Services will be charged a bad debt expense once the uncollectible receivable is written off by the Bursar's Office.
All questions concerning the Salary Overpayment Reimbursement policy should be directed to the Office of Human Resources Director of Payroll.
Social Security CoverageSocial Security Coverage
All regular employees of Georgia Tech, except those specifically excluded under an agreement with the Social Security Administration, are covered by the Federal Social Security Act. Payroll deductions are made for the employee's share of the cost of this insurance, with the Institute paying a matching share.
Social Security coverage has been extended to the following classes of employees:
- All employees eligible for the Teachers Retirement System of Georgia.
- All employees eligible for the Regents Retirement Plan (ORP).
- All full-time regular custodial and maintenance personnel.
The following employees are not covered by Social Security:
- All students -- undergraduate, graduate, graduate teaching, and graduate research.
- All temporary, seasonal and hourly, employees. Note: These employees do pay the Medicare Insurance Portion of Social Security.
- Non-immigrant aliens are exempt in accordance with the provisions of their visas.
Student Pay GroupStudent Pay Group
In order to comply with federal Fair Labor Standard Act (FLSA) regulations, no Georgia Tech employee, student or non-student, shall be hired concurrently in both a monthly paid exempt status plus a bi-weekly paid non-exempt status.
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record keeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $5.85 per hour effective July 24, 2007; $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009. Overtime pay at a rate of not less than one and one-half times their regular rates of pay is required after 40 hours of work in a workweek.
In order to comply with federal Fair Labor Standard Act (FLSA) regulations, no Georgia Tech employee, student or non-student, shall be hired concurrently in both a monthly paid exempt status plus a bi-weekly paid non-exempt status. The Institute will derive the weighted-average pay rate based upon these concurrent hourly rates of pay and pay any overtime accordingly. If the student is paid as a monthly exempt employee, the percentage distribution will be utilized to allocate their time worked to the hiring department and the associated account number.
Exempt employees (student or non-student, full time or part time)
are paid monthly and are exempt from the Fair Labor Standards Act (FLSA) and therefore not subject to overtime payments.
Non-Exempt employees (student or non-student, full time or part time)
are paid bi-weekly and are not exempted from the Fair Labor Standards Act (FLSA) and therefore are subject to overtime payments for all hours worked in excess of 40 hours per work week.
Our workweek is
Sunday through Saturday. Time worked does not include Holiday, Vacation or Sick pay.
All employees must be paid in only one pay group, either monthly or bi-weekly. For example: if a student is paid monthly and is hired into a concurrent job in a department that will pay them hourly on the bi-weekly payroll, the originating department will be notified by Payroll that the situation exists and the student will not be hired into the concurrent position until there is an agreement to make the student in one pay group, most likely hourly. When agreed upon, the Payroll Department will correct the PSF and process the transaction.
Time & Leave ReportingTime & Leave Reporting
In compliance with the University System of Georgia (USG) and Georgia Tech policies, the Fair Labor Standards Act (FLSA) and the Affordable Care Act (ACA), Georgia Tech must maintain accurate daily work time records for all non-exempt employees and all part time employees.
Georgia Tech must also maintain records of all absences (whether paid or unpaid) on both non-exempt and exempt employees (including faculty).
Misrepresenting working hours, falsifying signatures or timesheet information, recording time from an unauthorized Georgia Tech device or location or tampering with a Georgia Tech time clock/kiosk or another employee’s timesheet are extremely serious offenses. Employees found to have engaged in any of these prohibited activities will be subject to disciplinary action, up to and including dismissal.
Delegation enables one person to authorize another to serve as their representative (proxy) when managing time transactions. A manager can delegate their tasks of approving time and entering employee time to another person due to workload or their own absence from the office. Delegated authority can be upward, lateral, or downward within the reporting hierarchy. Once the delegation framework passes delegated authority over a transaction to a proxy, the proxy cannot delegate authority over that transaction to another person. Both parties maintain responsibility to ensure compliance with policies and procedures.
Exception Time Reporting
Exempt employees reporting process which requires an Exempt Employee to only report leave time used during a pay period (i.e., sick, vacation, jury duty, etc.). If the Exempt employee has no leave to report, the only action required is the employee and manager’s time sheet approval.
Fair Labor Standards Act (FLSA)
Federal act that establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.
Employees who do not meet any of the Fair Labor Standards Act exemption tests and are covered by wage and hour laws regarding minimum wage, overtime pay, and hours worked. Non-exempt employees are entitled to overtime compensation for any hours worked over 40 in an established workweek. Exempt: Employees who meet one of the FLSA exemptions (i.e. Executive, Administrative or Professional) and are not entitled to overtime.
Positive Time Reporting
Non-Exempt Employees Reporting process which requires a Non-Exempt Employee to submit a timesheet of hours worked in order to be paid. The timesheet includes regular time for all hours worked in addition to leave time taken within an established workweek.
An official document for recording the number of hours worked and/or leave taken by an employee in a work week or pay period. The timesheet can be in a form of electronic or paper documentation.
Non-exempt Employee Responsibilities. Non-exempt employees must accurately report all hours worked and any leave taken during the established workweek. Such records must document hours actually worked, rather than hours scheduled to work. Each non-exempt employee is responsible for ensuring that all time worked and leave taken are accurately reflected on their timesheet, and the timesheet must be approved by the employee by the established payroll approval deadlines. Failure to approve the timesheet by the established deadline may jeopardize on-time processing and receipt of employee pay.
Exempt Employees Responsibilities:
Exempt employees (staff and faculty) only record exception time on the timesheet. The employee’s time sheet must be approved by the employee by the established payroll approval deadlines.
Generally, the ACA conversion chart will be utilized to determine weekly hours worked for part-time faculty. (See HRAP Employee Category – ACA Requirements.) If a part-time faculty member is working hours in excess of what is shown in the conversion chart, these hours must be recorded, approved by the supervisor, and entered on the employee’s timesheet for tracking for ACA purposes. If the conversion chart does not accurately reflect hours worked for a part-time faculty member, the part-time faculty member should track actual hours worked. If leave or time reported changes after approval is submitted, the employee is responsible for notifying their Primary Approver by submitting the required documentation to update the time and leave record. Continual neglect by an employee to approve time and/or leave in accordance with established policies and pay dates may result in disciplinary action.
Primary Approver Responsibilities
The Primary approver is typically the direct line supervisor with authority to approve or deny leave. The primary approver is responsible for ensuring that all time and leave records are current and accurate for their areas of responsibility. Managers with timesheet approval responsibilities are required to approve timesheets for their direct reports as required by the Institutions’ established payroll approval deadlines. If primary approvers are not available to approve timesheets in accordance with the established approval dates, their responsibility must be delegated to an authorized and approved proxy.
An individual who is reporting time should not be responsible for approving their own time or that of their peers.
If leave or time reported changes after approval is submitted, the employee is responsible for notifying their Primary Approver by submitting the required documentation and the Primary Approver is responsible for updating the time and leave record and submitting changes to the appropriate institutional office for recording and record retention.
Primary approvers who do not review, correct, and approve timesheets by the deadlines may be subject to disciplinary action. Departments may require a more rigorous process as deemed appropriate and documented in the departments time and leave approval procedures.
Types of PayrollsTypes of Payrolls
This procedure explains the various pay cycles and pay calculations.
Faculty, administrative personnel, salaried Graduate Assistants, Graduate Teaching Assistants, and Graduate Research Assistants, and employees exempt from coverage under the Fair Labor Standards Act (Wage and Hour Law) are paid on the monthly payroll.
Employees compensated on the monthly payroll are paid on the last workday or banking day of each month. If the last workday is an Institute or bank holiday, payment is made on the day before the holiday.
- Full Month Compensation (other than those on an Academic Contract)
The amount of monthly compensation is equivalent to one-twelfth of the fiscal year annual salary.
- Partial Month Pay Calculation
The number of days worked in a month is divided by the total number of workdays to determine a percentage of compensation for that month. Partial pay is calculated by multiplying the monthly rate by the percentage of compensation.
- Vacation Pay Upon Termination
Terminating vacation pay is calculated by multiplying the daily rate by the total days of accrued vacation leave. The daily rate is computed by dividing the annual salary by 2,080 hours x 8. The maximum accrued leave that can be paid upon termination is 45 days.
- Academic Pay Cycle under the Semester System
Under Georgia Tech's semester system, individuals paid on the academic pay cycle receive 10 monthly payments during the regular academic year. The academic year salary is paid out over the 10 months of the academic contract year: 1/18 of academic year salary in August, 1/9 of academic year salary from September through April, and 1/18 of the academic year salary in May. In other words, the employee receives 1/2 of a months pay in May and August, and a full months pay the other 8 months. The summer session is handled separately during the four months from May through August, with the May and August summer salary payments being added to the employee's regular academic year monthly salary, if any. AMN, AMG, RWA will follow proration rule, effective 08/01/02.
While the above describes the general rule of pay for the academic pay cycle, other job events do have a bearing on a particular individual's pay: pay increases for the new Fiscal Year, terminations, retirements, and leave all affect pay. The following describes in detail the pay rules for August and May under Georgia Tech's semester pay system.
August Payment Rules
August Pay for 9-Month (Academic Cycle) Instructional and/or Research Faculty, Post Docs, and Graduate Students will be paid in compliance with the 10-payment plan described above. The August Pay will reflect the Last Payment for the Summer Session and First Payment for the Fall Semester. Payment rules that will be applied are:
9 MONTH FACULTY:
- Instructional and/or Research Faculty with hired in August will be paid 1/2 of their monthly rate.
- Instructional and/or Research Faculty that are terminating, retiring, or on leave without pay effective the 1st day of the fall semester will be paid only the Summer Pay entered into the Summer Pay Panel or via pay.ask. If no Summer Pay has been entered or submitted via pay.ask, these employees will not be paid.
GRADUATE STUDENTS PAID ON ACADEMIC PAY SCHEDULE:
- Graduate Students pay is prorated according to the number of days worked.
The formula to calculate partial pay for August is:
____ # Days worked divided by Total # work Days in August = ____
% days worked ____ % Days worked times ____ Monthly Rate of Pay = _____August Partial Pay
EX: Jamie Dollar's appointment date is effective 8/21/2006 and the monthly rate of pay is $1500.00. As a result, he will be paid 9 of 23 workdays in August.
9 divided by 23 = .313182 times $1500.00 = $586.96
Please forward all questions to email@example.com
Bi-weekly Staff and Student Payroll
Employees, including students, covered under the Fair Labor Standards Act (FLSA) and hourly appointments for employees exempt from the FLSA are paid bi-weekly.
Hourly appointments of non-exempt staff assigned to a line budget position or a group budget position and hourly exempt staff are paid bi-weekly. Hourly appointments of Graduate Research Assistants, and Student Assistants also are paid bi-weekly. The annual salary is determined by multiplying the hourly rate x 2,080 hours. The gross amount of each check is determined by multiplying the hourly rate of pay by the number of hours reported on the bi-weekly time document.
Pay dates are normally 7 work days after the pay period ends. If the pay date falls on a holiday, including bank holidays, payment will be made on the preceding workday.
Unclaimed Salary/Wage Checks and AdvicesUnclaimed Salary/Wage Checks and Advices
This documents the procedure followed by Payroll when unclaimed employee salary/wage checks.
Employee paychecks are mailed to the employee's home. Effective 01/01/05 Pay Advises are available to the employee online at TechWorks.gatech.edu. Procedure
The US Post Office will return unclaimed salary/wage checks to the Payroll Department:
The Payroll Department will take the appropriate actions required to locate the employee or escheat the returned check. If the returned check is voided, the expenditure records of the department will be adjusted accordingly.