Nine Month Faculty Annualized Pay Option
In August 2012, USF created the “Nine-Month Faculty Deferred Pay Program”, an optional program designed to hold, in the form of a deduction, a portion of a nine-month faculty member’s after-tax income and distribute it to them in six equal installments during the summer months. The program essentially bridged the gap between the nine-month work year and the desire to have twelve months of income. In the spring of 2013, Human Resources formed a committee to explore and recommend opportunities to improve the existing program.
We are pleased to offer a new program that will be better serve the needs of the faculty. The new program is essentially a Nine Month Faculty Annualized Pay Option Program
Program Enhancements
- The deduction amount is based on actual earnings and benefit rates rather than an artificial set-aside amount.
- Participation will remain voluntary, but will now include automatic re-enrollment.
- Facilitates financial planning for new faculty.
- Nine-month faculty new hires will be required to enroll in their state benefits or agree to a benefit cost estimate of their state benefits prior to enrolling into the program, this will allow for more accurate set-aside amount determination.
- Faculty members can receive a consistent net paycheck amount for all 26 pay periods of the year, regardless of the split pay weeks or benefit double deductions.
Nine Month Faculty Annualized Pay Option Program Enrollment Process
Nine-month faculty members may enroll into the voluntary, non-interest bearing program during the annual Open Enrollment Period, which for the 2013-2014 academic year will be from July 1, 2013 through August 23, 2013. Interested faculty members may request a calculated estimate of their annualized net pay amount by email at or by contacting the Payroll Department by phone at (813) 974-7955. The deadline to request an estimate is August 19, 2013.
Who may participate?
Faculty members on nine-month appointments may participate in the program.
Can I opt out of the program mid-year?
Yes, participants who decide during the year that they wish to discontinue participation may cancel their enrollment through a written, signed letter to the Payroll Department. Those who leave the program for any reason may not re-enroll until the next program open enrollment period.
Will my enrollment continue year after year?
Yes, your enrollment will continue until you notify the Payroll Department in writing that you wish to discontinue your participation.
Is there a way to determine what my annualized check will looklike?
Yes, please contact the Payroll Department by phone at (813) 974-7955 or by email . Please note that benefit and/or pay changes will have no impact on your calculated deduction amount. Pay and/or benefit changes will impact your taxes and your net pay. Also, please understand that the calculated annualized amount is not an exact, it is a calculated estimate. Your actual pay may check differ.
What are the parameters surrounding the estimate?
- The estimate will take into account benefit costs as of August 2013 and will not reflect changes made during Open Enrollment for 2014.
- The estimate takes into account your W-4 payroll tax election as of the time that the estimate is prepared.
- Changes to salary, deductions, or W-4 payroll tax elections after enrollment will most likely change your net pay. The set-aside deduction will not be re-calculated should any of these variables change.
- The deduction amount is effective for the 2013-2014 academic year and through summer 2014. Each academic your deduction will be re-calculated.
- Prior to the start of the Fall 2014 semester the set-aside deduction and the estimated net pay amount will be re-calculated and provided to you.
- Participation will remain voluntary and will include automatic re-enrollment. Set-aside deductionsfor the 2014-2015 academic year will begin with the 8/22/2014 paycheck for those who areautomatically re-enrolled.
- Participants can opt-out during the year. Re-enrollment in the program cannot occur until the next program open enrollment. The participant’s account will be reconciled and paid in full in the first available pay period.
What would an example of participating in the Annualized Pay Option look like in comparison to not participating?
Assumption:
1. $75,000 salary with the following deductions:
2. Family health insurance
3. Employee + spouse dental insurance
4. Parking
5. W4 election is married and 0 exemptions
6. Spring double deductions still occur, but the extra amount is somewhat spread out which lessens the immediate effect.
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What happens if I leave USF before the end of the academic year?
Participants who terminate employment before the end of the academic year will be paid in full for the amount of deductions that had been collected to that point. Payments will be made in the next regular pay check.
How will this program impact me if I have a summer appointment?
Summer appointments will not impact the deduction distribution that you will receive during the summer months. The deduction distribution you receive will be in addition to your summer pay. The deduction distribution will not be taxed, as it was after-tax deduction.
Will I earn interest off of the deferred money?
No, participants will not be able to collect interest on the withheld money through this program. This program is designed as a savings method to help manage cash flow for nine-month faculty over the summer months. However, many financial institutions, including the USF Federal Credit Union, can establish a similar program that provides an interest-bearing solution to employees.
How will this impact my taxes?
Participation in this program will have no impact on your taxes because the deduction is an after-tax transaction.
Who can I contact for more information on the program?
You can contact the Payroll Department by phone at (813) 974-7955 or by email at