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Highlights


Details

  • Annual Defer Pay Selection/Change

Annual Defer Pay Selection/Change

Each year, academic year faculty and flex-time exempt status employees (PAT), who are in continuing status appointments (per USY HR policy V.F.10.2.2), can elect to receive their payment between the dates of their appointment (year) or to spread (defer pay) over a 12 month period (26 biweekly payments). New appointments are set up to pay between the dates of their appointment year and will continue as such until the employee elects otherwise. If the employee makes no election, payment will occur over the dates of their appointment year.

The election to defer pay, or change from defer pay to pay during the appointment period, requires the completion of the USNH Defer Pay Selection/Change Form. Approved forms must be received at the USNH Payroll Office by the deadline. Any form received after the deadline will NOT be accepted.

Government regulations do not permit an individual to change the election once the payment year has begun.

The regulation allows employees to take advantage of the short-term deferral of their academic year salary over a 12 month period, as long as their salary is below a dollar amount as specified in Reg.402(g)(1)(B). The amount is subject to cost-of-living adjustments. When an employee's salary exceeds this value, their deferral is subject to tax and reporting over the dates of their appointment. In 2014, the salary maximum for USNH defer payment schedule is $210,000. USNH has determined that any employee whose salary equals the regulation threshold will no longer be provided the choice to defer pay.

The form can be found at http://finadmin.usnh.edu/Disbursements/Payroll/Forms/USNH_Defer_Pay_Selection_Change_Form.pdf

What is the deadline?

Election/Change Deadline Who
Friday, August 1, 2014 Faculty
Two weeks before appointment year's begin date Flex-year PAT staff

Two options exist to assist an employee to prepare for the non-work summer period.

  • An employee may receive their pay during the appointment period and use a self-directed fixed direct deposit allotment of their choosing to a savings account. This allows the employee to self-manage their money, making the monies that have been deposited to their savings account available for them during the summer months. (Preferred Method)
  • Another option available would be to use Banner-HR "defer" pay method. This option defers a portion of pay to a non-interest earning account which is used for payment during the summer payout period. This option does not provide flexibility as the deferred salary is not available to the employee, no matter the situation or need to have access to it sooner.

When an employee makes an election to defer their pay through the Banner HR system, a portion of their earnings are set-aside during the time they are working to be paid-out during the non-work period. Each year the employee's work period and non-work period is reviewed relative to the associated defer pay schedule. Appointment dates that vary from one year to the next will create inconsistencies in payment between the two payment years.

Employees are urged to give careful consideration to the alternatives available before they choose the Banner HR defer pay election.

Which choice is preferred?

USNH recommends that employees receive their pay over the dates of their appointment year; campus academic year for faculty or appointment dates for flex-time exempt status employees (PAT). This choice is recommended for the following reasons:

  • Payment occurs when the work is being performed.
  • The employee retains control and access over their money (savings and payout) which can earn them interest and dividends when they invest in their chosen financial institution.
  • The employee's saved money is available to them if they experience a need to access the funds before the summer payout period.

What is impacted by a payment election?

An individual's payment selection (pay over appointment dates or defer pay) determines the wage payment amount, the benefits deduction schedule and the deduction amount withheld each pay period. The USNH HR system manages the payment and deductions based on the start date. The varying components associated with an employee's payment and benefits schedule are carefully coordinated by multiple campus and central offices.

Who must approve an employee's selection or change?

The form must be approved by the Campus HR Office before submission to USNH Payroll. Ample time must be allowed for campus HR to receive, approve and forward forms to USNH payroll prior to the deadline.

Your assistance is appreciated by communicating this information to all eligible employees at your campus or unit. As a reference, this information will be posted to the USNH HR web site and also to USNH Financial Services web area at http://finadmin.usnh.edu/Disbursements/Payroll/Forms/

Please contact the Campus HR or Campus Payroll if you have questions.
  • Unimarket User Group Meeting for Thursday, April 24 is cancelled

Unimarket User Group Meeting cancelled

The Unimarket User group meeting scheduled for Thursday, April 24, 2014 at 1 Leavitt Lane, Room 225 from 3 PM to 4 PM is cancelled. Please watch for future Finance FYI's with new meeting dates.

In the interim, please visit the USNH Unimarket SharePoint Site for up to date information regarding these tools.

Reminder:

  • Change in mileage reimbursement rate

IRS STANDARD MILEAGE RATE for Business Travel will change on 1/1/2014

IRS has announced that 2014 Standard Mileage Rate for business travel will decrease by half a cent to 56.0 cents per mile on January 1, 2014.

The USNH mileage reimbursement rate for the business travel for those using a personal vehicle in the U.S. will also decrease to 56.0 cents per mile driven (IRS Notice 2013-80, released 12/6/2013).

Note: In the event that a Campus sets a different mileage reimbursement rate than the USNH rate, the Campus Financial Services Office will communicate directly with their travelers.

 

 

 

 

 

The USNH Personal Reimbursement Form will be updated to reflect the 56.0 cent mileage rate effective 1/1/2014. The form can be found at USNH Personal Reimbursement Forms Reimbursement of mileage prior to this date will be paid at the rate in effect at the date of travel. These rates can be found on the USNH Financial Services. Mileage Rates Web Site.

If you have any questions, please contact USNH Accounts Payable via email at USNH Accounts Payable or via phone at (603-862-1474)


Last Modified: 5/20/2014 1:23 PM
Last Published: