A faculty employee is an individual with an active exempt employee assignment in the Oracle administrative systems with a designated tenured or non-tenured faculty job title. For listing of faculty job titles, see the UAB Faculty Handbook. Faculty employees are paid on two different pay contracts: A 9 or 12 month contract. Both contracts are paid through UAB Payroll Services on a monthly basis.
Nine Month Faculty
A nine-month appointment is for the (contract) period August 15 - May 14. The faculty member has the option of receiving the nine-month pay over twelve months (August 15 - August 14) indicated by the term 9-in-12 (deferred) or nine months (August 15-May 14) indicated by the term 9-in-9 (non-deferred).
The federal Cost Accounting Standards (CAS) requires that we account for the salary expense as it is earned. A 9-in-9 salary is CAS compliant because it is disbursed as it is earned. A 9-in-12 salary is not disbursed as it is earned. That is, a portion of the salary is paid during May, June, July, and August (non-contracted period) for the work done in the previous contracted period.
The default nine month faculty payroll is the 9-in-12 (deferred) distribution cycle.
9-in-12 Pay Practices
UAB uses the term "escrow" for the 9-in-12 salary to properly record the difference in the amount "earned" versus the amount "paid." The escrow amount and the actual amount paid to the 9-in-12 faculty are reflected on the monthly account statements and the quarterly effort report during the contracted period. This allows us to account for the salary expense as it is earned in compliance with CAS.
The escrow balance is paid (and taxed) over the non-contracted period. No payment or effort for the escrow paid will be reflected on the monthly account statements or the quarterly effort report during the non-contracted period.
The IRS refers to the accumulated balance in escrow from August 15 to December 31 and not paid and taxed to the faculty member until the next non-contracted period as deferred income. Failure to comply with IRS regulations may make this amount subject to reporting in Box 12 Y on the W2. In the year that the non-compliance deferred income is paid, it would be reflected in the income Box 1 and information Box 12 Z.
Nine Month Faculty Election
The default nine month faculty payroll is the 9-in-12 (deferred) distribution cycle.
- Any 9-in-12 month faculty electing to change to being paid over 9 months (9-in-9 non-deferred) must have their election request to Payroll Services by July 31 for upcoming academic year.
- Any 9-in-9 month faculty electing to change to being paid over 12 months (9-in-12 deferred) must submit their election request to Payroll Services by July 31 for upcoming academic year.
- If no election change request is received prior to August 1 for upcoming academic year, the faculty member cannot change the pay distribution cycle.
- Hire documents for incoming nine month faculty members with an effective date prior to July 31 must be complete prior to July 31 in order for the new faculty member to make an election. If no election is made, they are automatically paid on the default 9-in-12 payroll.
- Hire documents with an effective date after July 31 are automatically paid on the default 9-in-12 payroll .
Payroll Services will process all payroll change ACT documents following the July 31 deadline. Documents will bypass user workflow.
Summer Pay for Nine Month Faculty
Nine month faculty who teach courses during the summer months are paid via ACT document through the Oracle Administrative System. The guidelines for issuing these payments are as follows:
- ACT Document Reason - Nonrecurring Element
- Effective Date - First day of the session
- Element Entries - Summer Faculty
- Entry Value - Amount to be paid for each summer faculty element entered
- Labor Sources - account that is to be charged for the element payment
- Comment - include the course name(s) and number(s)
Additional Information:
- The Nonrecurring Element document should be created under the existing nine month faculty assignment
- The effective date of the document should not be before 15MAYXXXX, as the spring academic session officially ends 14MAYXXXX
- Multiple element entries may be submitted on the same document
- Payments may be distributed throughout the months of the session or paid in full following the end of the session. Final payment may not be issued until the session has ended.
- Labor source information must be included for all elements unless the summer pay is to be charged to the existing nine month assignment labor sources
Learn more about Nonrecurring Element ACT documents.
Questions regarding summer pay should be directed to the Office of Associate Provost for Faculty Development and Faculty Affairs.