The University of Chicago
The University of Chicago

Local Business Center, Division of the Physical Sciences

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Summer Salary, aka Faculty Extra Service

For faculty with 9-month appointments, extra service payments during the 3-month out-of-residence period is often called "summer salary." However, in theory, it could be any stretch of 3 consecutive months depending on the terms of the faculty member's appointment. Faculty Extra Service is recorded in subaccount 1090 and can be charged to unrestricted accounts as well as grants/contracts as permitted in the award documentation.

A PI is normally allowed to take up to 2 months (from all sources) of summer salary when out-of residence. Summer support in excess of 2 months requires the approval of the Dean and Provost. Some funding agencies/awards may have special restrictions on the amount of summar salary allowed and some awards may disallow it altogether.

Step-by-Step Summer Salary Procedure

Note: The dates used below assume an out-of-residence period of July 1 - September 30, but the general timeline can apply to any 3-month period.

  1. Three months prior to the beginning of the out-of-residence period, the Financial Administrators begin discussions with faculty about their funding plans (approx. April 1 -15).
  2. By the end of the month (approx. April 30), the funding plans should be determined and the Financial Administrators will enter the figures on the Summer Salary PI Signature Confirmation Form and distribute them to the appropriate faculty members requesting summer funding. The distribution emails should include the following…
    • formal language regarding effort, vacation, cap, etc. (see form)
    • a note that all requests are to be forwarded to the Deans office and any over 2 months will additionally need to be forwarded to the Provost office by the Dean.
    • a link to the most recent summer salary faculty memo
    Department Chair approval is no longer required. Hardcopies of the signed confirmation forms should be kept in the faculty members' personnel files and scans should filed in the share drive folder .\Summer Salaries 20xx\Concurrences\ with the following file name convention [lastname_firstname-FY20xx_summer_sal].pdf.
    *Note: Salary amounts are not needed on the confirmation form.
  3. As summer salary plans are confirmed by the faculty, the Financial Administrators will update "Final 20xx Summer Salary.xls" with account distributions. "Final 20xx Summer Salary.xls" is located in the .\Summer Salaries 20xx\Workday Charge Info\ folder on the share drive. In the spreadsheet, each WorkDay HR Partner has a tab and so data should be entered accordingly based on the faculty member's home department
    • GeoSci = Kate Casey
    • Math, Stats, CompSci, and Chemistry = Caroline Santana
    • All other depts. = Rebecca Kurns
    Annual salary increase schedules will be available around May 15 in the password protected file "Z file.xls," located on the share drive in the .\Faculty\ folder under the appropriate fiscal year. The Financial Administrators will update "Final 20xx Summer Salary.xls" with this salary data. When the distributions and salaries are finalized, the Financial Administrators will note the date in the "finalized" box along with their initials. Finalized data must be entered before the first of the month prior to the beginning of the out-of-residence period (no later than May 31).
  4. By the first of the month prior to the beginning of the out-of-residence period (June 1), the WorkDay HR Partners will take the data in the "Final 20xx Summer Salary.xls" spreadsheet and enter it into WorkDay. Any HR Partners without access to the share drive will have the spreadsheet distributed to them by Emily Backe.
  5. Ten days prior to the beginning of the out-of-residence period (June 20), the dean's office will review the summer salary data in WorkDay and the "Final 20xx Summer Salary.xls" spreadsheet. At this time, the dean's office will also forward materials for approval from the provost if needed.
  6. By the beginning of the out-of-residence period (July 1), the Financial Administrators should double check the payroll allocations in WorkDay to ensure that there are no errors.

Note: when completing the "Final 20xx Summer Salary.xls" spreadsheet, observe the following…

  1. Always use the "Final 20xx Summer Salary.xls" template to ensure uniformity in the process.
  2. Do not use this form for emeritus faculty payments. Since they are retired, a 4Q out-of-residence period does not apply to them. Payments can occur at any time during the year and are always processed in WorkDay as "Period Activity Pay - Additional Assignment"
  3. Indicate whether a 6-ledger account is restricted or unrestricted (e.g. 6-34123 [R], or 6-34123 [U]). This is important for insuring that the 5% administrative effort is properly recognized.
  4. Use the "comments" box to indicate other special circumstances such as salary caps, which might otherwise appear to be calculation errors.
  5. Advance accounts may be used for summer salary only if we possess a notice of grant award (NGA) or email confirmation from the program officer.
  6. Do not assume that the salary amounts will be the same for all three months. Pay special attention to the schedule of salary increases because not all will take effect on July 1st.

< 100% Summer Effort

On sponsored awards, a faculty PI may not devote 100% effort to a project during any given pay period when he/she is out-of-residence. For more details see the Provost's summer salary memo. 100% monthly effort during the academic year is likewise not possible because of teaching and other commitments that the PI would have at this time. 100% of a PI's monthly effort can be charged to a grant if the PI is a senior scientist or other non-faculty PI academic who is fully grant supported.

The University will allow a cumulative 95% of monthly salary amounts to be charged to one or more sponsored awards during these months. The other 5% is charged to a clearing account and charged back to the award later when the PI is back in residence. This is done as follows:

  1. The Summer Salary PI Signature Confirmation Form is completed by the PI and his/her financial administrator. The financial administrator and the PI should confer about this in advance to ensure that sufficient funds are available and the agency/award guidelines are followed.
  2. On the confirmation form, up to 95% of the PI's monthly effort can be applied to sponsored award account. 5% is applied to the PSD summer salary clearing account, 4-53001. However, if at least 5% of the PI's effort is charged to a unrestricted account in a given month, then the clearing account should not be used for that month and likewise the salary adjustments for that month's effort will not be necessary when the PI is back in residence.
  3. When the PI is back in residence (typically in October), 5% or the amount of the equivalent effort applied to the clearing account is now charged to the sponsored award account. This can be done either by changing the PI's payroll distribution in Workday or through payroll transfers from the PI department's instruction account (or the usual internally funded academic year salary account) to the sponsored award. No funds should be transferred from the PSD summer salary clearing account.

The following tables are an example of a PI taking a total of 2.5 months of summer salary across three federal awards.

Summer Distributions
July (half month)* August (full month) September (full month)
Fed award #1, 95% Fed award #1, 47.5% Fed award #3, 95%
4-53001, 5% Fed award #2, 47.5% 4-53001, 5%
4-53001, 5%
*Remember these are percentages of effort and not monthly salary. If the PI only takes a total of 2 weeks of salary in July, then those 2 weeks are 100% of his monthly effort. This must be acknowledged when performing the summer adjustment transfers.
Summer Adjustment Transfers
October
Dept. instruction account, 87.5%
Fed award #1, 5% (2.5% in July and 2.5% in August)
Fed award #2, 2.5%
Fed award #3, 5%

If a federal award to which summer effort is being charged will end before the following October, then the summer adjustment transfers for that account will need to be completed using June salary figures before the summer salary payments begin.

WorkDay Data Entry (for HR Partners)

Beginning June 1 - access the file "Final 20xx Summer Salary.xls" located in the PSD LBC shared drive.

The Dean's Office will need to review and approve all summer salary submissions before the Provost Office review in Workday, so please begin submitting items now with all submissions sent no later than June 20.

When making Period Activity Pay entries for summer salary, observe the following…

  • Effective Date: Use the present day as your effective date
  • Academic Period: 2015-2016 Academic Year
  • Reason: Period Activity Pay - Summer Salary; Then, select one of the following options:
    • 1/9 - anyone receiving a total of up to 1 month of summer salary
    • 2/9 - anyone receiving between 2 and 2½ months
    • 3/9 - anyone receiving more than 2½ months
  • Activity: 4th Quarter Payment
  • Activity Dates and Payment Dates: Only enter one month at a time. The Activity Dates may be less than a full month (for example, if the faculty member is only taking ½ month). However, the Payment dates must always be the beginning and end dates of the month.
  • Quantity: Leave as 1
  • Assigned unit rate: Enter the total dollar amount being paid for that month from the spreadsheet.
  • Costing Overrides: Click on the gray circle to pull up the account screen; Referencing the spreadsheet, type in the six-digit account number (no dash) and hit enter on your keyboard. Then type in subaccount 1090 (faculty) or 1190 (OAA) and hit enter. Enter the $ amount that should be charged to that account, and WorkDay will automatically calculate the %. Click on the + sign to add additional account numbers and repeat this process.
  • Each month of summer salary will be a separate Period Activity Pay row. Use the + sign to add additional months.

See also the Quick Reference Guide for Period Activity Pay

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