Human Resources

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Salary Formulas

Standard Salary Calculation Formula

The following formula is used to calculate a new base salary when multiple increases are involved:

Base + Promotion 10% + Merit

Note: COLA calculation is listed in section below.

FY15 Note: In prior fiscal years, merit was not awarded in the same year that promotion increases occurred for academic faculty. However, given that merit awards for 2014 (to be effective on July 1, 2015) are to take into account all activities and achievements over the calendar years of 2008 through 2013, both promotion and merit can be awarded for FY15. The foundation for the calculation of the promotion increase amount for academic faculty has been based solely upon the prior year base salary, this practice continues for FY15. Any merit to be awarded will be as one of the fixed amounts of $1,000; $1,500; $2,000; $2,500; $3,000; or $4,500 and will be added after the promotion calculation.

Cost of Living Adjustment (COLA) Calculation Formula

Cost of Living Adjustment (COLA) is calculated as follows:

(Old Base + Merit + Promotion) * COLA%

Example
(50,000 + 1,000 + 2,000 = 53,000) * .04 = COLA of 2,120

Old Base Salary = 50,000.00
Merit = 1,000
Promotion = 2,000  
COLA% = 4%
Equity = 1,500

Note: Equity is not included in the calculation to determine COLA.

Administrator Return to Teaching Salary (ARTS) Calculation Formula

An ARTS base salary is the negotiated academic year salary for an administrator when the administrative position was accepted. ARTS are notated in the remarks section of the employment document. An increase to an employee's ARTS is handled independently, yet in the same manner as their "A" base salary. The method is as follows:

Old "A" Base + Merit + Promotion + COLA + Equity = New "A" Base
Old "ARTS" Base + Merit + Promotion + COLA + Equity = New "ARTS" Base

Example
90,000 + 1,000 + 0 + 3,640 + 0 = 94,640 (New "A" Base Salary)
65,000 + 1,000 + 0 + 2,640 + 0 = 68,640 (New "ARTS" Base Salary)

Old "A" Base Salary = 90,000.00
Old "ARTS" Shadow Base Salary = 65,000.00
Merit = 1,000
Promotion = 0
COLA% = 4%
Equity = 0

Note: COLA calculation is listed above.

"B" Shadow Base Salary Calculation Formula

A "B" shadow base salary is the academic year salary for a faculty member who has taken on administrative duties and is now paid on an "A" base salary or fiscal year salary. The "B" base salary, for these employees, has been increased to a factor of 1.2 to compensate for the added responsibilities and time commitment. An increase for an employee who is being compensated on an "A" base salary and has a "B" shadow base Salary is calculated as follows:

Old "A" Base/1.2 = Old "B" Shadow Base
Old "B" Shadow Base + Merit + Promotion + COLA + Equity = New "B" Shadow Base
New "B" Shadow Base X 1.2 = New "A" Base

Example
60,000 / 1.2 = 50,000
50,000 + 1,000 + 2,000 + 2,120 + 1,500 = 59,620 (New "B" Shadow Base Salary)
59,620 X 1.2 = 71,544 (New "A" Base Salary)

Old "A" Base Salary = 60,000.00
Old "B" Shadow Base Salary = 50,000.00
Merit = 1,000
Promotion = 2,000
COLA% = 4%
Equity = 1,500

Note: COLA calculation is listed above.

Calculating "A" Contract (Fiscal Year) Salaries with Mid-month Starting or Ending Pay Period Dates

Faculty salaries are paid on a monthly basis (the monthly pay period is from the 1st of the month through the last day of the month). At times appointments begin or end in the middle of a month. To calculate the correct amount to include in your document total, use the following calculation.

(Monthly pay period amount * number of full pay periods) + prorated pay period amount(s)

The following formula is used to prorate a mid-month amount for salaries starting or ending in the midst of a month.

(Annual full-time salary * retirement factor (if applicable) * FTE of employee/12) rounded to the nearest cent = Monthly Pay Period Amount

(Monthly Pay Period amount/# of workdays in the pay period being prorated) rounded to the nearest cent = Daily Rate

Daily Rate * # of workdays employee in paid status = Prorated amount

Example
An employee on an "A" contract starts February 17, 2004. There are 20 working days in February. The employee is on contract for nine of the days in February.

Start date: 2/17/04
End Date: 6/30/04
Base Salary: $40,000.00
Monthly Pay Period Amount: $3,333.33
Number of work days in pay period to prorate: 20
Daily Rate: $166.67
Number of days employee under contract: 9
Proration for February: $1,500.03
Contract total with additional un-prorated pay periods: $14,833.35

Note: Workdays are all days in the month excluding weekends. Holidays are included but an employee cannot start on a holiday.

Calculating "B" Contract (Academic Year) Salaries with Mid-semester Starting or Ending Pay Period Dates

Faculty salaries are paid on a monthly basis (the monthly pay period is from the 1st of the month through the last day of the month). Academic year appointments are based upon the academic calendar. They are not under contract the full fiscal year and prorations of a semester must reflect the percentage worked. At times, appointments begin or end in the middle of a semester. To calculate the correct amount to include in your document total use the following calculation.

(Semester rate / number of work days in semester) * number of workdays employee is under contract.

The following formula is used to prorate a semester amount for salaries starting or ending in the midst of a semester.

(Annual full-time salary * retirement factor (if applicable) * FTE of employee/2) rounded to the nearest cent = Semester Amount

(Semester Amount/# of workdays in the semester being prorated) rounded to the nearest cent = Daily Rate

Daily Rate * # of workdays employee in paid status = Prorated Semester amount

Example
An employee on a "B" contract starts February 10, 2004. There are 84 working days in the spring semester. The employee is on contract for 64 of the days in the semester.

Start date: 2/10/04
End Date: 5/17/04
Base Salary: $48,000.00
Semester Rate: $24,000.00
Number of work days in semester: 84
Daily Rate: $285.71
Number of days employee under contract: 64
Proration for Semester: $18,285.44

Note: Workdays are defined on the academic year calendar. Visit the office of the executive vice president and provost to view the calendar.

Calculating Fringe Inclusive Salary Modification

The following formula is used to calculate a fringe inclusive modification to an existing salary.

Monies awarded/(1 + Fringe Rate for employee type) = Gross Amount Available to Pay

Example
Employee Type: Faculty Position (Professional Contract)
Monies Awarded: $3,000.00
Fringe Rate: 13.31%

$3,000/1.1331 = $2,647.60 gross could be paid

Current fringe rates

Calculating Budgeted Salary and Fringe

The following formula is used to calculate how much money would be needed to fund a salary and associated fringes when proposing a position.

Proposed Salary + (Proposed Salary * Fringe Rate for Employee Type) + Health Insurance if applicable = Amount Needed to Fund Position

Example 1
Employee Type: Faculty Position (Professional Contract)
Proposed Salary: $35,000.00
Fringe Rate: 13.31%
Health Insurance cost: $5,590
$35,000 + ($35,000 * .1331) + $5,590 = amount needed to fund position
$35,000 + ($4,658.50) + $5,590 = $45,248.50 needed to fund position

Example 2
Employee Type: Letter of Appointment (one month temporary part-time appointment)
Proposed Salary: $2,000.00
Fringe Rate: 9.51%
Health Insurance cost: Not Applicable
$2,000 + ($2,000 * .0951) = amount needed to fund position
$2,000 + ($190.20) = $2,190.20 needed to fund position

Current fringe rates