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Frequently Asked Questions

Additional Compensation

Where can I get more information about additional compensation?

Red Binder VI-10 through VI-17
Academic Personnel Manual 660 through 667

Additional Compensation training class; usually offered in the spring. Check the training schedule on the Academic Personnel web site. Slides from the Additional Compensation class, including examples of various PPS input screens; under “Staff Training Materials” on the Academic Personnel web-site.

Contact Academic Personnel: Andrea Dittman, x3445 (andrea.dittman@ucsb.edu)

What is additional compensation?

Additional compensation is any salary paid to an academic appointee by the University in excess of their full-time salary. The term “University” includes all campuses within the UC system. The term "additional compensation" refers only to compensation through the University payroll system and is not used to refer to compensation for employment outside of the University.

What are the limits on additional compensation?

Additional compensation during the academic year is allowed only for duties not directly related to the faculty member's recognized University duties. Examples of this include department chair stipends, lectures given on other UC campuses, Extension and Off Campus Teaching, and faculty consulting.

Additional compensation during the Summer quarter is allowed because faculty are paid on a 9 /12 basis. This means that although an academic employee only works for the University from September through June he or she receives 12 paychecks spread over the year. If the employee performs additional work for the University during the Summer, they may receive additional compensation. The employee will continue to receive their regular pay as well as the additional compensation. All ladder rank faculty, as well as other academic appointees paid on a 9/12 basis are eligible to earn additional compensation. Payment is made using the annual salary at the 1/9th rate (annual salary divided by 9) up to a maximum of 3/9ths per summer. 1/9th may or may not be equal to one month depending on the type of payment and calculation method used. The 3/9ths must be appropriately adjusted if the academic appointment is less than 100% time.

Who is responsible for assuring that the maximums are not exceeded?

It is the responsibility of the department and the faculty member both to assure that the 3/9th maximum is not exceeded.

Can I pay summer salary to a faculty member who is on leave fall quarter?

Yes, the leave status for fall quarter does not interfere with summer compensation. Make sure that the leave is coded in PPS as a leave with pay. If the leave is without pay, the DOS code on the distribution line will prevent regular pay from being issues. However, if the leave without pay code is used (08) all pay will be blocked, including the summer compensation. Using the leave with pay code (07) will allow additional compensation payments.

What is a faculty consultant payment?

A faculty member may receive additional compensation for consulting on projects conducted under the auspices of the University if the consulting does not fall within the normal duties of the individual. The rate is negotiated, but may not exceed the daily rate when state funds are used, or the daily rate plus 30% if grant funding is used. The additional 30% is in consideration of the fact that no benefits are paid on the salary. If payment is to come from a grant, the grant should first be reviewed to assure that consultant payments are allowed. Payments are allowed during both the academic year and the summer months. During the summer the compensation counts toward the 3/9ths maximum.

For 9-month employees the daily rate is figured by dividing the annual salary by 171. For 11-month employees the daily rate is figured by dividing the annual salary by 236. The DOS code is FCA.

I input a Faculty Consultant by-agreement payment but when the payment was made it was less than it should have been. What did I do wrong?

Based on faculty consultant policy partial months are suppose to be used. However, doing a by-agreement appointment for a partial month may result in the payment being pro-rated based on the number of days used on the distribution line. In order to avoid this problem, figure the correct number of days to be used, based on policy. Note this calculation in the comments. In PPS use the full month to make the FCA payment

What is the difference between an “intercampus one-time payment form” and a “multi-campus appointment form”?

Both of these forms are used for processing payments for academic employees who are employed on one UC campus but performing services for pay on a second UC campus. The One-time payment form is used for one-time events. The Multi-campus payment form is used for on-going activity, such as teaching a class for a full quarter.

What limitations are there on intercampus one-time payments?

One-time honoraria for lectures and similar services may not be made from state funds, but are permitted from gifts, endowments, contracts and grants with specific budget provisions for such honoraria or from University Extension.

If non-state funds are not available, a faculty member may only be reimbursed for actual expenses incurred in presenting lectures or performing similar services from 19900 funds.

One-time honorarium payments are allowable up to $1,500 per event. Exceptions beyond this amount may be requested, but may not exceed $ $3,000.

The total dollar amount that may be earned via one-time honorarium payments during an academic year is 10% of the faculty member's annual salary.

Payments for lectures and similar services that take place during the summer count toward the 3/9th limit.

How do I process a one-time payment form?

The form can be downloaded from the Academic Personnel web site.

When UCSB is the host campus, the department will prepare the Intercampus One-time Payment form indicating the desire to hire a person from the home campus.
The UCSB department should contact the home department to verify the individual's current title, pay rate and basis of pay. The form should be filled out to include the person's name, title for payment, the host department's name, the rate of pay and the period of the appointment. The appropriate individual in the department should sign as the "Host Campus Fund Source Authorization." The completed form must be submitted to the Academic Personnel office, with a copy sent to College office or other appropriate control point.

When UCSB is the home campus, the Intercampus One-time Payment form will be prepared and sent by the host campus department directly to the UCSB Academic Personnel office, and will then be forwarded to the home department. The department should verify the accuracy of the information on the form, ensure policy compliance, and obtain the appropriate departmental signature on the "Home Campus Dean's Office/Academic or Staff Personnel" line. The completed form must be submitted to the Academic Personnel office, with a copy sent to the College office or other appropriate control point.

How do I put the one-time payment in PPS?

Payments are made using a one-time intercampus payment form. No PPS entry is involved. Payment is issued by the home campus.

A faculty member wants to be “released to grant”. What is that, what kind of approvals do I need, and how do I put it into PPS?

During the academic year a faculty member may not use grant funds to earn in excess of his or her regular 100% salary. The faculty member may, however, use the grant funds in place of a portion, or all, of his or her regular state funded salary for a limited amount of time. This is called a "released to grant", it is not additional compensation. The salary being paid from the grant funding must be paid under a Professional Research title, rather than the Professor title. Payments are made on the same basis and at the same pay rate as the Professor appointment (9/12). The DOS code used is REG.

A faculty member wants to be paid their "housing allowance”. What is that and how do I pay it?

The Faculty Recruitment Allowance (or Relocation Allowance or Housing Allowance), is made available to help newly recruited senate faculty meet the costs associated with purchasing a home, usually the down payment or closing costs. It may also be used towards the initial deposit necessary for a rental. The relocation allowance cannot be paid until after the initial hire date as a faculty member. Payment is made using the title code 3993, with a DOS code of FHA and a PRQ code of EA.

Either the MO or BW pay date may be used for such payments. The BW pay date may be used to process retroactive MO and one-time payments. Any questions regarding the effects of the MO versus BW pay dates on taxes and withholdings should be directed to the payroll office.

The appointment/distribution is entered into PPS as an MO payment. It may be entered as Fixed (F) with Exception (R) time reporting, or as Variable (V) with Positive (Z) time reporting if being paid in arrears. The payment may then be processed via the EDLR screen as an LX payment.

How do I know what days during the summer can be used for additional compensation payments?

Only certain days during the summer can be used each summer. This is the time period from the day following the last day of final exams in the spring, through the last day before classes start in the fall. The dates, along with percentage of time calculations can be found in the Red Binder, VI-10.

Can I pay all 3/9ths of summer salary my faculty member is earning during the same month?

Each day during the summer can only be used once (up to 100%). The only exception to this rule is that summer session dates may overlap with other summer compensation dates

What title codes do I use to pay additional compensation?

For release to grant (during the academic year) use:

 GeneralEngineering/Econ
Asst Res32231985
Assoc Res32131983
Res32031981
For summer additional compensation use:
 GeneralEngineering/Econ
Asst Res32251986
Assoc Res32151984
Res32051982
Lecturers16081608

How do I pay 1/9ths from Non-State Funds?

When paying summer 1/9ths from non-state funds, 3/9ths is equal to 57 working days (not 3 calendar months). Working days are defined as Monday through Friday, including paid holidays. Additional compensation may, therefore, never exceed a total of 57 working days during the summer period. A distribution line on the PPS may show in excess of 1.0000 in a given month, provided that the total compensation is to exceed one month (19 days). For example, if a total of 2/9ths is to be received, the individual could receive more than 1/9th in the first month (distribution line showing more than 1.0000), and the remainder in the second month for the total distributions to equal 2.0000.

The 19-Day Chart is used and the payment is made on a variable payment sub. The chart is used to determine the number of summer days that will be used to make the payments. Payment is made on a Researcher title on a 9/9 basis at the equivalent rank and step. The DOS code is ACR.

What is the NIH cap?

For faculty earning summer compensation from NIH sources, the NIH places a limit on the annual and monthly rate that the individual may be paid. The cap as of January 1, 2012 is $178,700. (divide by 12 to get the monthly rate= $14,975) So only applies to faculty with an annual rate of $134,775 or higher (14,975 x 9).

If the NIH cap figure is lower than the faculty member's annual salary rate, it will not be possible to earn a full 3/9ths from the NIH grant. The NIH cap figure must be used as the annual rate for the summer payments, and the 19 day chart and the maximum of 57 days must still be observed. It is, however, possible for the faculty member to receive summer compensation from other sources as long as the total does not exceed 3/9ths. Additional sources may include; summer session teaching, chair stipends or payment of NIH salary supplementation from gift of non-federal funds (title code 3998).

I’ve been told to pay out a flat dollar amount of summer compensation, not 1/9th. How do I do this?

Sometimes start up will be awarded in terms of a flat amount rather than 1/9th. You will have to back into the percentage to pay it. If you have a full month (July or August) available that will be the easiest way to do the calculation.
Example: to pay a flat amount of $6,000 to someone with a 1/9th rate of $7,000

$6000/$7000= .8571 Use the full month of July at .8571

If the payment is higher than the monthly rate you will have to extend into a second month. In this case, or if you need to spread the payment over two months for some other reason, please contact Academic Personnel for assistance.

How do Summer Session payments figure into additional compensation limits?

Faculty may receive additional compensation for teaching Summer Session classes. The Summer Session’s staff prepares the PPS transaction, rather than departments. These payments count towards the 3/9ths maximum that may be earned during the summer.

Summer Session payments are always made at the 6/30 pay rate rather than the 7/1 pay rate. Payments are made using the Professor title at the 1/9th rate. The DOS code is SSC for individuals who are already members of the University retirement system and SST for those who are not. SSC will cause contributions into the retirement system, SST does not.

The dates used for Summer Session payments may overlap with other kinds of summer compensation.

When can I pay someone an administrative stipend?

An administrative stipend may only be paid after having been approved by the appropriate Vice Chancellor. Payment may be in a title such as Department Chair, Director, or Associate Dean. During the academic year payments are made using the DOS code STP at the approved rate.