HR & Payroll News

9-Month Faculty Pay Information

We’d like to update 9-month faculty on upcoming pay information. 

 

Deferred Pay 

 

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 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 twelve (12) months beginning the following academic year. 

For more information on deferred pay, please review the Deferred Pay tab on our website.

 

Enrollment 

To enroll or make a change to your current election, please complete the 9-Month Faculty Pay Selection form found on the HR & Payroll website under 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.  

Continuation 

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.  

Position Changes 

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 

Health benefit premiums will be deducted over nine (9) months for all 9-month faculty. 9-month faculty paid over twelve (12) months will continue to have health insurance premiums deducted over 24 pay periods (September – September). 

Retirement deductions, university contributions to retirement, and tax withholdings will be based on wages paid, not wages earned. 

Tax Implications 

There may be additional tax implications/fees when electing to defer pay. Therefore, it is recommended that faculty consult with a tax advisor for any questions about the potential impact of electing to receive compensation over twelve (12) months. 

 

Health Deduction Changes 

 

Starting with the NEW Academic Year 2022-2023, HR & Payroll will no longer double deduct health insurance premiums for the months of March, April, and May for 9-month faculty.  

Instead, health insurance premiums will be evenly deducted from your paychecks over 18 pay periods (September – May) for continued health coverage in the summer months. This change applies only to 9-month faculty paid over nine (9) months. 

9-month faculty paid over twelve (12) months will continue to have health insurance premiums deducted over 24 pay periods (September –September). 

No action is required from 9-month faculty. 

 

How does this impact me? 

The process will lessen the impact on your net pay by evenly deducting the healthcare premiums.

  

How do I determine what my new deduction amount is for healthcare? 

Using the health plan enrollment and coverage level that you have elected: take the total monthly premium, multiply by 24, then divide by 18 to get your new pay period amount.   

The Health Insurance Plan Year is from July 1 through June 30 of each year. Health insurance coverage extends through August 31.  

Full-time 9-month faculty can terminate coverage for the summer months if separating from the University AND if the request to terminate coverage is received by the Benefits team before May 31. 

 

If you have questions, please email hr@gmu.edu.