9-Month Deferred Pay Option for Faculty
Full-time 9-month faculty paid over nine (9) months have the option to be paid over twelve (12) months.
The pay schedule will remain the same for current faculty and will only change if the faculty member completes the online form prior to the start of the academic year (August 25). If the faculty member previously elected to have their academic year compensation paid out over a 12-month period and wishes to maintain that election, no further action is required.
The election is irrevocable for the academic year and cannot be changed after the commencement of the academic year as per the Internal Revenue Code – IRC 409A. New 9-month faculty will be paid over nine (9) months and will have the opportunity to elect to be paid over 12 months beginning the following academic year.
To enroll or make a change to your current election, please complete the 9-month Faculty Pay Selection form found on the Human Resources and Payroll website within the Employee Timesheet and Payroll Resources tab. HR & Payroll must receive your completed form no later than August 24. Your election will remain in effect unless you submit an additional form during a future-year open enrollment period.
It is not necessary to re-enroll each year. Faculty pay schedules will continue under the same schedule they are currently enrolled in unless they elect to change their election.
Faculty must withdraw from the plan if they plan to retire or enter into their final year of a phased retirement agreement, have an FTE reduction, take a leave of absence, or go on long-term disability.
Benefit deductions that are in effect for twelve (12) months for faculty paid over twelve (12) months (i.e. medical, dental, etc.) will be deducted over the entire twelve (12) months instead of nine (9) months. Retirement deductions, university contributions to retirement, and tax withholdings will be based on wages paid, not wages earned.
There could be additional tax implications/fees when electing to defer pay. Therefore, it is recommended that faculty consult with a tax advisor regarding any questions about the potential impact of electing to receive compensation over twelve (12) months.
If you have questions, please email firstname.lastname@example.org.