Academic Pay Encumbrance Calculation Changes

Overview

The academic pay encumbrance process has been updated so that 9 over 12 pay is encumbered in KFS based on the annual work period (when the pay is earned) instead of the disbursement period (when the pay is paid). Encumbrances for academic pay will return to how they processed prior to the Workday implementation. Earnings for 9 over 9 employees have also been revised so that encumbrances accurately reflect half a month of pay in August and half a month in May.

The academic pay encumbrance changes apply to the fringe component as well.

 

Who Is Impacted?

This change impacts:

  • Business Officers and Account Managers will see encumbrances in KFS for Faculty, Graduate Assistants and others on academic pay based on employees’ annual work period.
  • Finance Partners and others with reporting capabilities in Workday will see encumbrances for Faculty, Graduate Assistants and others on academic pay based on employees’ annual work period on reports such as Payroll Activity Summary by Employee and Position.
  • Encumbrances for other employees and other types of pay will not be impacted.

 

What Is Changing?

Academic Pay Encumbrance Calculations

9/12 Employees

Previous Calculation Method

Previously, encumbrances for 9 over 12 employees were reported over the 12-month disbursement period.

New Calculation Method

Now, encumbrances for 9 over 12 employees are reported for August 16 through May 15.

Example

  • A 9 over 12 employee with an annual salary of $90,000 would previously encumber at $7,500 every month, August through July.
    •  
    • $10,000 September-April (total=$80,000)
    • $5,000 for May

 

9/9 Employees

Previous Calculation Method

Previously, encumbrances for 9 over 9 employees were reported as a full month of pay each month from September through May.

New Calculation Method

Now, encumbrances for 9 over 9 employees are reported for August 16 through May 15.

Example

  • A 9 over 9 employee with an annual salary of $90,000 would previously encumber at $10,000 each month, September through May.
  • Now a 9 over 9 employee with an annual salary of $90,000 will encumber at $5,000 in August, $5,000 in May, and $10,000 each month from September through April.

 

Notes

  • As a result, August and September encumbrance amounts may appear unusual each year. KFS reports encumbrances cumulatively, so encumbrance amounts will appear more consistent.
  • The September encumbrance will be reduced by the half month pay once the August payroll is completed.
  • If an employee goes on sabbatical in August, the encumbrance amount for August may be incorrect.