Stipend for Exempt Staff

Introduction
A stipend is a fixed sum, usually temporary, paid to an employee to recognize work responsibilities that are significantly higher than the employee’s regular duties.
  • Exempt Employees in Staff job codes that are range-based, the stipend is entered as an additional distribution line with Earn Code SAS (Staff Stipend).
  • Employees in Staff job codes that are Step-based receive extra pay through Temporary Job Reclassifications or Step Increases, not stipends.
  • As of Nov 2014 – Non-Exempt employees not represented by a union may receive a lump sum stipend as an additional job.
  • An Academic Stipend is entered as an Additional Job.

Exercise Scenario
Eric Thomas, an exempt employee who is a Senior Development Engineer (0728U), has been given a significantly higher-level work assignment for the next four months, so the department is going to pay him a 10% stipend in addition to his regular pay. Even though it was offered as a percentage, stipends are always entered as a Lump Sum. Therefore the amount of the stipend will be $689.35/month and will be paid to him for four months, effective from the beginning of this month.
Note: When entering stipends, make sure you do NOT delete the distribution line for regular pay. This transaction will have multiple distribution lines, for regular (REG) pay and for the stipend (SAS).
Job Data
  1. In HCM, go to Workforce Administration > Job Information > Job Data. Type “Thomas” in Last Name, click Search, and select the employee record for Eric ThomasXXX.
Work Location
  1. On the Work Location tab, click the Plus button to insert a new row.
  2. Change the Effective Date to the first day of this month. Tab out.
  3. Choose the Action (Pay Rate Change) and Reason (Stipend- Staff).

Earnings Distribution
  • Go to Earnings Distributionpage.
  • Begin Date = MO/DY/YEAR (e.g. 5/1/15)
  1. Click the Plus button to display a blank distribution line.
  2. Enter the information for the second distribution.
  • Begin Date = MO/DY/YEAR (5/1/15)
  • End Date = Last day of the month, 4 months from now
  • Earn Code = SAS (Staff Stipend)
  • Distribution % = Blank
  • Pay Rate/Amount = $689.35
  • Budgeted FTE = Blank (stipends are never budgeted)
  • Chartstring
  1. Click the Save button at the bottom of the page.
  2. Read the Warning message about the fact that the base salary has not been updated, then click OK to keep saving. (Because this is just a stipend, not a permanent change to his base pay, we have entered it correctly.)