Supplemental Compensation Plan Procedures

Human Resources | Safety/Security | Research Compliance | Compliance | Privacy/Information Security | Business Operations | Intellectual Property

General Accounting | SBIR/STTR Program Participation | Supplemental Compensation Plan | Facilities Management/Planning | Purchasing | Public Affairs | Facility Identification | Serving Alcoholic Beverages | Travel and Reimbursement | State Vehicles | Reproducing Copyrighted Materials | Credit Card Processing | Student Training Agreement | Non-faculty Volunteers | Cash Handling | Fraud | Assigning Research Lab Space | Public Research Lab Space | International Health Education | Faculty Personnel Records | Cellular Phone | Off-campus Graphic Design and Related Printing | Off-campus Photography | Tax Exempt Financing and Tracking of Both Qualified Use and Non-Qualified Use of Research Space | Secondary Logos | Social Media

Effective Date: 02/01/07

Supplemental Compensation Plan Procedures

Please see: UNMC Policy No. 3039, Supplemental Compensation Plan

It shall be the responsibility of the dean or director of each department or institute to develop, implement and monitor supplemental compensation plans, in accordance with:

• UNMC Policy No. 3039, Supplemental Compensation Plan
• Faculty Handbook , Supplemental Compensation Plan, Sections 6 – 7

Each supplemental compensation plan shall include billing and accounting procedures which provide thorough accountability for receipt and disbursement of plan funds, including proper set up in SAP as explained below. Each plan shall use a separate University account which may receive funds from any one or more of the sources permitted under Regental Addendum VIII-A-4, §5.3 (dated June 20, 1987).

At the time supplemental compensation is committed to a participant, a Terms of Employment Agreement will be signed, a Personnel Action Form will be processed, and funds will be transferred to the designated University account.

An annual report of the activities of each supplemental compensation plan shall be made to the Chancellor. The Vice Chancellor for Business and Finance or his/her designee will review all supplemental compensation plan activity on an annual basis and the responsible dean or director shall respond to any recommendations.

This report should include the participant’s name, academic rank, supplemental compensation, and base University salary for each participant. The yearly report will also include both an explanation of performed review procedures and recommendations if problems are discovered.

Entry of supplemental compensation in SAP:

Effective immediately, all departments, colleges, and institutes at UNMC must enter supplemental compensation (wage code type 1410) in SAP:

• Bulleted list item

on the IT9027 screen (also called the cost distribution screen for payroll funding)

• Bulleted list item

and on the IT0014 (recurring payments) with wage code type 1410 BUT with NO cost object distribution on it. If you have questions on how to enter this data in SAP, contact Payroll Dept. at 559-4391

Basis for this change of procedure:

Federal regulations require that basic university benefits (health, retirement, FICA, etc.) be allocated in proportion to payroll expense. Entering supplemental compensation (wage code 1410) in SAP on IT9027 satisfies this requirement.

The "Supplemental Compensation Plan" chapter of the faculty handbook states that only incremental benefits (those calculated as a percent of salary) are to be considered in determining whether supplemental compensation plans are adequately funded (see sections 6.4 and 7.2 of "Supplemental Compensation Plan" chapter of the faculty handbook).

Should it be necessary to determine funding adequacy, health and life insurance charged to supplemental compensation centers should be excluded. Consult the Office of Financial Controls and Compliance for assistance with these calculations.

Supplemental Compensation Plan Policy

This page updated on 07/10/08, by dkp.

Last Review by Policy Owner: July 10, 2008