There Are Two Different Ways to Hire Clinical Faculty UMP Only Or Commonpaymaster

University of Minnesota Medical School Handbook For Medical School Accountants UMP Only vs. Commonpaymaster Last Date Reviewed: 10/9/15

There are two different ways to hire clinical faculty – UMP only or Commonpaymaster.

What is Commonpaymaster?

 Specific to faculty members that hold both a University and UMPhysicians appointment (employed by both organizations)

 Faculty members receive two paychecks, but only one W2. The benefit of the Commonpaymaster system is that it is treated like one employer. This allows FICA to be withheld up to the maximum for both the employer and the employee only once. Without Commonpaymaster, the University would have to withhold FICA up to the maximum and so would UMP. The employee would have to get the excess FICA withholdings back on their annual Federal return and both UMP & UMN would have paid the maximum FICA amount, which would be twice as much as needed.

 Faculty members teach medical students and residents in addition to clinical responsibilities

 May participate in/lead research work or projects

What is UMP only?  Faculty member is only employed by UMPhysicians  100% of their time is spent on clinical work, so they may or may not teach medical students or residents. If they teach residents, they must have a Without Salary University appointment (per LCME requirements).  May or may not participate in research related projects

Why would we hire as UMP only instead of Commonpaymaster?

 Faculty member does not want to teach medical students or residents  Hire is on a contract so if contract ends abruptly, we can end employment quickly (not as easy if they have a Common Paymaster appointment)  Short term employment  Flexible appointments (hourly rate, daily rate, etc.)  Benefits cost less (no University pension)  Less stringent rules on terminating employment if necessary  Opportunity for trial period for new physicians