Frequently Asked Questions from Grads Related to Change in Academic Year Payroll Frequency

 

Question 1: I Prefer the current academic pay arrangement that provides 10 equal payments. Why not continue just like we do today?

 

Answer 1: With different academic calendars in place at each of the four Purdue campuses, the current payroll is manually calculated and quite complex to administer. Continuing our current practices in a new software environment designed to calculate and automate high-volume transactions would perpetuate inefficiencies and errors linked to manual processes. Of even greater concern, replicating the current schedule would require so many payroll “runs” per year that it would pose a risk to meeting deadlines and transmitting funds on time.

 

 

Question 2: Why is a 10-equal-pay schedule so difficult for a sophisticated new computing system?

 

Answer 2: SAP’s payroll-processing capability is ranked high among ERP vendors because it has the capacity to calculate partial payments, deductions and retroactive transactions. To utilize this functionality, payroll must be based on commonly recognized time units (e.g., weeks or months). The academic pay calendars Purdue currently uses equalize pay over 10 pay periods, but these periods do not correspond to 10 calendar months. This disparity makes every payroll computation more complicated. Adding to this complexity, semester start and end dates vary across the four Purdue campuses. In the current system, there are no standard time units (day, weeks, months) in a pay period. The only option available for administering this kind of a schedule requires manual calculations and staffing to audit, adjust and correct errors that are inherent in such a system.

 

 

Question 3: I am interested in being paid 12 times per year for my academic-year assignment.

 

Answer 3: The SAP software facilitates the offering of a “Summer Savings” option to provide payments 12 times per year. Opportunities to enroll will be announced with the implementation of the new system. If you choose this option, you should be aware that the University will not be able to pay interest on any funds that are withheld for the purpose of equalizing your compensation payments. Some financial institutions may offer automated savings/checking arrangements that would allow you to receive 12 monthly payments.

 

 

Question 4: How will summer-session pay work as we move to this new arrangement?

 

Answer 4: All summer earnings from mid-May through the end of May will be combined with the last academic-year payment on May 31; June summer work will be paid June 30; July summer work will be paid July 31; and any work in August would be combined with the first academic pay issued August 31.

 

Question 5: Graduate assistants, lecturers and visiting faculty are sometimes offered teaching positions very close to the start of the semester. Creating payroll records in time to receive the August paycheck may not be possible. Will these staff members have to wait until the end of September to be paid?

 

Answer 5: The fall semester is a unique period of intense activity for all involved in staffing. As business processes are established for the new system, Payroll can work in conjunction with their colleagues in the academic business offices to select a date to run an “off cycle” payroll to produce payments for individuals set up in the system after the August 31 run. This is similar to the arrangement in place today.

 

Question 6: I currently hold a 12-month, or fiscal year, appointment. Does this change apply to my pay schedule?

 

Answer 6: No. The change is applicable to academic-year appointments only.

 

 

Question 7: If the spring semester of 2007 can be paid to us using the current 10-equal-pay schedule, why can’t this just continue?

 

Answer 7: When a new payroll system is implemented, it is “best practice” to match the new payroll results to the old payroll results. This is a reliability check that is important to both employees receiving the pay and the payroll administrators producing it. During the spring transition semester, the automation and partial-pay calculations will not be functioning for the academic-year faculty and staff. There will be significant manual efforts required to adjust transactions that will become automated with the fall 2007 semester.

 

 

Question 8: When does this change actually take effect?

 

Answer 8: Here is a draft of the 2007 “transition year” academic pay schedule dates:

 

            AY January 31, 2007

            AY February 28, 2007

            AY March 30, 2007

            AY April 30, 2007

            AY May 15, 2007

 

Transition begins with the summer session:

            SS May 31, 2007 (transition year only)

            SS June 29, 2007

            SS July 31, 2007

 

            AY August 31, 2007

            AY September 28, 2007

            AY October 31, 2007

            AY November 30, 2007

            AY December 28, 2007