Guidelines for Awarding and Processing Extra Compensation per FHB C. 140
- C. 140 authorizes Deans and Directors to compensate regular faculty (those with continuing appointments) for provision of professional services that are above and beyond the faculty workload required by virtue of their faculty appointment contract. See C.100, C.110 and F.100 for workload definitions.
- Deans and directors seeking to award extra compensation for special assignments should first establish, have on file, and make available for public review, guidelines describing who may receive extra compensation, for what, for how long, how much may be paid, and how the unit ensures that extra compensation is not being awarded for work that should be part of the workload required by the faculty appointment contract.
- C. 140 payments should never be added to the base salary of a faculty appointment contract. C. 140 extra compensation cannot be for work that is intended to be part of a regular faculty workload or of a recurring or long-term nature. Base salaries are recurring, whereas C. 140 compensation is temporary; thus they are paid and tracked through different mechanisms in Banner.
- Research, adjunct, visitors and other temporary faculty holding non-continuing appointments are not eligible for C. 140 payments; C.140 payments are currently only permitted for regular full-time faculty. Because recurring base salaries are not associated with temporary appointments, simply adjust the rate of compensation in any given contract period to reflect the workload associated with temporary appointments.
- C.140 compensation should not occur during the summer intersession while 9-month appointment workload requirements are not in effect. Instead, regular 9-month faculty are eligible for Summer Compensation. See Summer Compensation Guidelines for details.
Budgeting and Accounting for C. 140 Payments
Budgeting Account Codes:
- Use account code 20EA to budget pooled revenue for C. 140 compensation expenses, in both Budget Planner and during the fiscal year.
- Do not use Position Numbers in Salary Planner to budget C. 140 compensation of any type. Position Numbers should only be used to budget contractual base salaries and any SACs per C.180.
Expense Account Codes:
Use the following account codes and mechanisms for expensing C. 140 extra compensation.
|Account Code||Name||Description/ Usage||Mechanism*|
|2001||Special Teaching Components (STC)||“Earnings for teaching above the base workload requirement, done for an outside department (but not Extended University).” USAGE: Teaching overload that is performed outside home department||Non-Standard Payment Form; earn code 200|
|2004||Teaching Overload||“Earnings for teaching above the base workload, done for faculty member's own department.” Usage: Teaching overload that is performed for contract home department(s)||Course Overload Form earn code 010 (Fall/Spring); Earn code 203 (summer)|
|2009||Extended University||“Earnings for teaching above the base workload requirement, done for Extended University.”||Non-Standard Payment Form; earn code 200|
|200C||Faculty Research Extra Compensation||Faculty Extra Compensation for Grant-Budgeted Research USAGE: Occurs rarely and only upon grantor/agency prior approval when included in grant budget. View the OVPR Extra Comp Guidelines||OVPR Extra Compensation form; earn code 200|
|200A||Non-Academic Service||“For occasional work not related to one’s academic role, e.g., sign language interpreter, musical performance, etc.”||Non-Standard Payment Form; earn code 200|
The Following Account Codes May Not be Used for C. 140 Extra Compensation Payments
Payments made for the following purposes are should follow other previously established contracting and/or payment processes:
|Account Code||Name||Description/ Usage||Mechanism*|
|2000||Faculty Salary Detail Gen||For “Earnings of employees holding faculty appointments; duration and rate as defined by Faculty Contract.” USAGE: Faculty Contractual Base Salary and any Special Administrative Components (SACs)||Salary Planner Position Numbers and Suffix(es)|
|2002||Faculty Summer Research||“Earnings of employees holding faculty appointments for summer research.”||Summer Research Form; earn code 204|
|2003||Faculty Summer Instruction||“Earnings of employees holding faculty appointments for summer instruction.”||Summer Instruction Form; earn code 203|
|200B||Faculty Summer Administration||“Temp admin. work that does not warrant a SAC (occurs outside the 9-mos. contract period, or infrequently, or for no more than one payroll cycle); if work recurs regularly then a C. 180 SAC should be created to add to contract”||Summer Admin form; earn code 203|
|2005||Faculty Incentive||“Used to record faculty incentive/deferred compensation payments.” NOTE: Currently used for HSC only; Main/Branch campuses are evaluating possible policies with regard to incentives.||Non-Standard Payment Form; earn code 202|
|2006||Faculty Endowed||“Faculty member whose position is supported by funds given by a donor.” USAGE: (1) either used to offset Account Code 2000 faculty contract salary; or (2) or used to make additional compensation available to faculty members via Chair or Endowed Professorship awards||(1) Faculty Contract |
(2) Non-Standard Payment Form; earn code 201
|2007||Faculty Temp Part Time||“Faculty who teach credit courses part-time and are hired semester by semester.” TPT (adjunct) faculty are not eligible for C. 140 extra compensation payments.||NOTE: Adjunct appointments should not be given to regular faculty who already hold a continuing faculty appointment (doing so would artificially inflate adjunct employee counts); use the Non-Std Payment form for regular faculty with teaching overloads or summer teaching|
*Processing C. 140 Payments
- Use the Non-Standard Payment Form; to initiate C. 140 extra compensation payments using the process outlined in Administrative Policy 2615: Non-Standard Payment Processing, Sec. 1, “Extra Compensation.” See sample attached.
- Select the “Extra Compensation” Earn Code on the Non-Standard Payment form for all types of C. 140 compensation, including STCs.
- Use “Description of Work” (field #8) to briefly describe the extra work for which the compensation is being awarded, e.g., “faculty incentive” or “teaching overload.” Also describe the number of days the work requires; the total number of days of work receiving Extra Compensation in an annual contract period may not exceed the equivalent of one day a week.
- Use “Total Pay Amount” (field #9) to show the total payment to be received, and to show the math for how the total payment was calculated. C.140 compensation must be calculated as a daily rate and not as an FTE percentage.
- Indicate “Start Date” and “End Date.” It is possible for Extra Compensation to be paid out over several months and across multiple payrolls which might be preferred for semester-long teaching overloads.
- Obtain approval signatures through the Dean level.
- Electronically deliver the signed form attached to an EPAF, with attached written approval and description of work and its terms, to Faculty Affairs and Services Office for validation and Payroll processing.
- If using restricted funds from contracts or grants, follow additional OVPR Extra Comp Guidelines.
NOTE: The Non-Standard Payment form does not create an employment relationship with the University and may not be used to compensate non-employees for services provided. Consult with the Purchasing Department for guidance.
Treatment of Course Buy Outs from Sponsored Research:
1. Work sponsored by a contract or grant would normally be considered part of the contractual base workload. Occasionally grantors will permit extra compensation for research if it is built into the grant budget but approval from the OVPR is required before paying C.140 extra compensation with grant revenue. Course buyouts made possible by sponsored contracts or grants and/or revenue from other internal academic units which supports the base salary would normally not be considered extra compensation since effort certification for sponsored work must be based on a 1.0 FTE and the sponsored research is normally accounted for during the annual workload setting process. For example, C.100 and C.110 permit a reduced teaching load if extra funded research obligations are taken on. Thus, if teaching commitments continue in addition to extraordinary funded research obligations, you may wish to treat these situations as teaching overloads (account code 2004) rather than research overloads (account code 200C).