CENTRAL SUSQUEHANNA INTERMEDIATE UNIT Application: Payroll

Setting Up a Sabbatical Payment Step-by-step Instructions

Table of Contents Introduction ...... 1 Identify ...... 2 Calculate ...... 2 Update ...... 2 Verify ...... 2 Example ...... 3 Identify ...... 3 Calculate ...... 3 Update Options ...... 3

Setting Up a Sabbatical Payment

INTRODUCTION This step-by-step guide will review how to calculate and enter information related to sabbatical payments. For information on setting up a sabbatical status for PSERS, please review information available on Status Changes.

IDENTIFY Collect all of the available information that will be necessary to calculate and update the EMPLOYEE MASTER/WAGE INFO record. • Annual Salary • Total number of days contracted for work • Total number of pays allotted to pay the Annual Salary • Current Per Pay amount • Current Per Diem amount • Number of Pays to Date • Salary Paid to Date After all of the information above is collected, identify the information needed to begin the sabbatical calculation. • The number of days at full rate and number of days at sabbatical rate • Percent of pay while on Sabbatical (example: 50%)

CALCULATE • Sabbatical Per Diem • Wages that were earned at full-rate and wages to be paid for sabbatical rate • Number of Pays remaining • Balance of Contract for full-rate wages • Sabbatical Per Pay amount

UPDATE • The employee's Per Pay amount • The Sabbatical Percent field • If paying Balance of Contract, update Payroll Entry

VERIFY Verify that the Sabb checkbox was selected on the EMPLOYEE MASTER/WAGE INFO screen. Use the CALCULATE ONE CHECK screen to test your calculations: On the CALCULATE ONE CHECK screen, multiply the retirement gross by the number of remaining pays; then, add that product to the amount paid to date. Verify that that total is equal to the amount entered in the Annual Salary field on the EMPLOYEE MASTER/WAGE INFO record.

Example

Identify The employee's Annual Salary is $50,000.00 for a 190-day contract that is paid over 26 pays. The current Per Pay amount is 1,923.08 with a Per Diem of $263.16. Eleven payments have already been made, and the amount paid to date is $21,153.88. This employee is working 96 days and is on sabbatical for 94 days. While on sabbatical, he/she will receive 50% of his/her regular salary.

Calculate • Sabbatical Per Diem $263.16 x 0.50 = $131.58 • Wages earned at Full rate $263.16 x 96 = $25,263.36 • Wages for Sabbatical 94 x $131.58 = $12,368.52 • Number of pays remaining 26 - 11 = 15 • Balance of Contract for days worked $25,263.36 - ($1,923.08 x 11) = $4,109.48 • Sabbatical Per Pay amount $12,368.52/15 = $824.568

Update Options Option A: Pay the employee the balance of contract amount in a lump sum and then pay the sabbatical wages over the remaining pays. Change the 'P' Payment Type amount on the EMPLOYEE MASTER record to the sabbatical Per pay amount. Enter 0.50 into the Sabbat Amt field on the Miscellaneous tab. When you enter the 0.50 percent a message will display that all Per pay amounts have been flagged as sabbatical wages. Pay the employee for the balance of days worked using a 'P' Payment Type in PAYROLL ENTRY. The amount paid through PAYROLL ENTRY will not be affected by the Sabbat Amt field entry. Option B: Pay both the balance of contract and the sabbatical wages over the remaining pays in one entry. Change the 'P' Payment Type amount on the EMPLOYEE MASTER record to the Sabbatical Per Pay amount plus the remaining Balance of Contract for days worked divided by the remaining pays. Calculate what the total amount of the new rate of pay is compared to the previous rate of pay. This will not be 0.50. In our example, 4,109.48 divided by 15 pays is 273.97 plus the 824.57 for the Sabbatical amount equals 1,098.54, which would be the new per pay amount. Calculate what the percent is of the normal per pay amount and enter that into the Sabbat Amt field on the Miscellaneous tab. In this example, that would be 0.57123 %. When you enter the percent, a message will display that all Per Pay amounts have been flagged as sabbatical wages. If you want to check your calculations, use the CALCULATE ONE CHECK program to verify the retirement gross. Option C: Pay both the remaining balance of contract and the sabbatical amount over the remaining pays identified separately, or have a payroll at the start of the sabbatical or end of the sabbatical where both regular and sabbatical wages must be paid during one payroll. Enter both of the amounts on the EMPLOYEE MASTER/WAGE INFO tab with 'P' Payment Types with only one of the payment types flagged as sabbatical wages. Enter the correct percent for the sabbatical wages, such as 0.50. Only the wages designated with the sabbatical checkmark will be used to increase the retirement gross above the payment value. All other wages are subject to retirement at face value. CAUTION: When the sabbatical payments are finished, remember to remove the extra 'P' payment type. All options require that when the sabbatical payments are complete, the Sabbat Amt field is reset to 0.0000, and the Sabb checkbox is deselected on the WAGE INFO tab.