Extra Duty Compensation Policy

Purpose: This policy sets forth the limited circumstances in which full-time faculty and employees may be approved to earn compensation that exceeds the employee's Institutional Base Salary (IBS) for additional duties performed outside the scope of the employee’s position(s) held.

Applies to: All exempt, full-time salaried faculty and staff with one exception pertaining to full-time non-exempt hourly employees.

Policy:

The university recognizes that in specific instances Extra Compensation is necessary to support the mission of the university. However, the university has an overall operational objective of minimizing the use of Extra Compensation since an employee is accountable to the university for 100 percent (100%) of the duties and responsibilities associated with the employee's primary appointment. The obligation of university employees is the full and complete execution of all assigned duties and responsibilities.

A.     Additional Duties

An employee may be afforded Extra Compensation for the following Additional Duties – interim duties, single assignments, occasional services, additional teaching compensation, or sponsored grant or research contract. An employee is not guaranteed Extra Compensation. The Additional Duties that may qualify for Extra Compensation include:

1. Interim Duties. A salary supplement that temporarily augments the Institutional Base Salary because of a temporary, continuous special assignment. When the special assignment ends, the salary reverts to the IBS. This does not apply to salary supplements on sponsored grants or research contracts. Interim duties occur when:
   
   1. Exempt full-time salaried faculty assume additional responsibilities associated with filling a vacant role of department chair or school director for more than two months; or program coordinator for more than one year; or
   2. Non-exempt full-time hourly administrative employees or non-exempt full-time hourly support staff assume additional responsibilities within normal work hours associated with filling a vacant position higher than their own on an interim basis for more than two months; or
   3. Exempt full-time salaried administrative employees assume additional responsibilities associated with managing another work unit, in addition to their own, on an interim basis for more than two months.
2. Single Assignment. A lump sum amount that may be given to a full-time exempt salaried administrative employee or full-time exempt salaried faculty for immediate, singular service well beyond normal or regular work responsibilities. Single Assignment work includes:
   1. An employee who agrees to an additional assignment working at a special event outside the scope of the employee’s duties; or
   2. An artistic activity, lecture/presentation, or performance that is for a university event whereby the work is not instructed, directed, or supervised and by which the employee is uniquely qualified.
3. Occasional Services. When exempt full-time salaried administrative employees or full-time exempt salaried faculty provide short-term, occasional, intermittent, or rare services. The following limitations and conditions must be satisfied:
   1. The agreed services may not be within the scope of a normal working activity of the employee; and
   2. If any portion of the funds to be used for Extra Compensation paid by the university is from sponsored grants or research contracts, the Extra Compensation must be approved in accordance with grant or contract terms.
4. Additional Teaching Compensation (ATC). When a full-time exempt salaried tenure or non-tenured faculty, full-time exempt salaried administrative personnel (professional staff), or a full-time non-exempt hourly employee provides university classroom instruction outside the scope of employee’s duties. Additional Teaching Compensation is managed by the Provost’s Office, and staff must have a faculty credential form on file.
5. Sponsored Grant or Research Contract. In rare instances, full-time exempt salaried administrative employees or full-time exempt salaried faculty may be permitted Extra Compensation under the terms of the sponsored grant or research contract for extra compensation.

B. General Considerations for All Faculty and Staff

1. Any employee who is asked to render services that are considered Additional Duty must receive prior approval from their supervisor and the appropriate reporting hierarchy prior to performing services by submission of either the Extra Duty Compensation form or the Additional Teaching Compensation form. Extra Compensation for an Additional Duty is not guaranteed.
2. When Additional Duties are necessary to carry out the responsibilities of the university, university rules and regulations must be followed and the Additional Duty for Extra Compensation must be approved by the appropriate reporting hierarchy.
3. The Additional Duty for which an employee receives Extra Compensation should not conflict with or reduce effectiveness of the employee’s performance of primary job responsibilities.
4. The purpose of Extra Compensation is for unanticipated activities which do not lend themselves to becoming part of the regular load. Extra Compensation therefore should not be an expected part of total compensation.
5. When Additional Duties last longer than six months, other than academic program coordinators, the department will work with their Vice President and Human Resources to determine whether to incorporate the duties into an existing position description, reclassify a position, or restructure the department to address the additional duties through Institutional Base Salary and remove the need for Extra Compensation.
6. Administrative personnel approved for Additional Teaching Compensation must be able to complete their full duties and be approved to work on a flexible schedule to handle the teaching assignment outside of regular job duties.

C. Extra Compensation Calculation

1. The amount of Extra Compensation will depend upon the degree of complexity of services and current pay.
2. In a given contract/appointment year, the amount of Extra Compensation for the Additional Duty will not total more than 20 percent (20%) of the employee’s annual Institutional Base Salary. Exceptions in excess of 20 percent (20%) of an employee’s annual salary must be requested in writing by the appropriate Vice President and approved by the University President. The request submitted must include an outline of the additional duties, a justification for the additional amount, the funding source, and the expected duration.
3. Extra Compensation is considered taxable income by the IRS.

D. Sponsored Grant and Research Contract Process and Procedures

The university is committed to ensuring that all charges to Sponsored Grants and Research Contracts are allowable and transacted in accordance with sponsor terms and conditions, regulations, and university policy.

1. General Sponsored Grant and Research Contract Compensation
   Compensation from sponsored grants and research contracts is normally paid as a portion of the employee’s Institutional Base Salary (IBS) for actual work performed on the grant or research contract from which the salary is paid. Compensated activities must be performed during the project period and are captured in effort certification reporting as part of the individual’s IBS. Compensation from sponsored grants and research contracts should not exceed the individual’s normal IBS rate of pay per OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (2 CFR 200.430), commonly called “Uniform Guidance”.
   1. For exempt and non-exempt employees, a portion of an individual’s IBS may be paid from one or more grants or research contracts proportional to the effort expended on each sponsored grant or research contract agreement during the term the work is performed. Individuals paid 100 percent (100%) from grant funds will not perform any institutional functions outside of their grant-related job duties.
   2. A full-time faculty member’s salary may be paid from one or more sponsored grants or research contracts proportional to the effort expended on each grant agreement during the academic term such work is performed. This reassigned time releases the faculty member from teaching, scholarship, and research activities proportional to the level of effort on the grant.
2. If permitted by a specific sponsored grant, research contract, and university policy, an employee may receive compensation for work directly related to the grant or research contract in the form of direct salary or additional compensation. The type and amount of compensation depend upon:
   1. The workload status of the employee (part-time or full-time);
   2. The type of work being performed;
   3. The employee status (exempt/non-exempt, faculty/staff); and
   4. The timing of work being performed (for example, weekends, after normal work hours, and summer months).
3. General Requirements for Sponsored Grant or Research Contract
   1. Active participation in research projects and other sponsored programs may require additional efforts.
   2. In general, sponsored grants or contracts for research should be undertaken on a released-time basis. When an employee undertakes a sponsored research project on a released-time basis, the grant shall be charged for that portion of his/her time devoted to the project per the terms and conditions of the grant or research contract. The rate of compensation will be the same as that paid by the university.
   3. In those instances where it is not possible for a faculty or staff member to be released from regular university duties to undertake sponsored research projects, payments of Extra Compensation may be permitted only when all of the following conditions are met:
      1. The faculty/staff member contributes to a sponsored program that is in addition to his/her normal workload.
      2. Funds are available on a grant, research contract, etc., that have been awarded to the university through the Office of Research and Sponsored Programs.
      3. It is understood that Extra Duty employment will be undertaken only when the Additional Duties will not interfere with regular university duties and are clearly allowed by the sponsoring agency with their prior approval in writing or contained within the award terms and conditions.
      4. The principal investigator requests and receives approval for Extra Compensation from the Office of Research and Sponsored Programs, Academic Department Chair, Dean, or staff supervisor by submission of the EDC form. No work is permitted on the project until all approvals from university administrators are secured. This could also occur during the proposal approval process with appropriate hierarchy approvals.
      5. The Extra Compensation is included in the proposed budget and budget justification submitted to the sponsoring agency and subsequently approved and incorporated into the grant or research contract award and any terms and conditions.
      6. Extra Compensation may not exceed 20 percent (20%) of the faculty/staff member’s IBS during the period of the faculty/staff member’s appointment. The 20 percent (20%) limitation applies to the total and not to each request separately.
      7. All faculty/staff member effort (departmental and sponsored grant and research contract), including Extra Duties, is documented and approved using the sponsored programs Time and Effort Reporting Form produced by University Payroll. Effort reporting is a federal compliance requirement.
      8. The policies of a sponsoring agency shall govern Extra Compensation when they are more restrictive than this policy.
4. Non-Compliance
   In instances of non-compliance of Extra Compensation paid from sponsored grant and research contract funds, if required by a sponsoring agency, auditor, or other authorized entity, the academic unit with managerial oversight of the sponsored agreement in question is responsible for repayment using departmental or division resources. This includes instances where administrative and/or sponsor approvals were not obtained in advance.

E. Procedures for Approval of Additional Duty Extra Compensation

1. Prior to an employee performing Additional Duty service, the administrative supervisor must determine the appropriate type of additional service and have the EDC or ATC forms approved by the appropriate administrative officials. If approved, a request for a lump sum payment will be paid after completion of the Additional Duty service.
   1. Interim Duty. An interim duty will require a new EDC form if the duty lasts longer than three (3) months from the month that extra compensation is approved.
   2. Single Assignment. A single assignment will require a new EDC form for each assignment.
   3. Occasional Service. An occasional service will require a new EDC form each month the duties persist. If the duties persist more than six months consecutively or intermittently, the job duties will need to be reassessed by the administrative supervisor and appropriate Vice President in conjunction with Human Resources for assignment under a position description or other restructuring within the department.
   4. Additional Teaching Compensation. An Additional Teaching Compensation service will require a new ATC form to be completed for each semester or summer of the teaching assignment.
   5. Sponsored Grant or Research Contract. A Sponsored Grant or Research Contract Extra Compensation will be processed through an EDC form in alignment with university policy and as required in the grant or research contract terms and conditions. At a minimum, the Extra Compensation should be reviewed annually.
2. Once it is determined by the administrative supervisor, the department chair, or the school director, that Extra Compensation or Additional Teaching Compensation is necessary and the employee agrees to the assignment, the administrative supervisor, the department chair, or the school director initiates the EDC form or the ATC form.
3. Extra Compensation paid in one lump sum will not be paid out until the completion of the Additional Duty.
4. If the Additional Duty completion date is unknown, the EDC shall be submitted for a maximum of two months.
5. The administrative supervisor, the department chair, or the school director will submit the EDC or ATC form through the reporting hierarchy to obtain approvals. At a minimum the form must be approved by the Vice President for Business, Finance, and Facilities. If an employee performs work outside their primary division, both divisions must approve in advance. Approval is based on the justification of the request and the availability of funds.
6. The employee shall receive a copy of the fully executed and approved EDC or ATC form.
7. Approved EDC and ATC forms shall be processed as follows:
   1. The approved EDC form for an interim duty shall be promptly submitted to Human Resources for processing through Payroll and a copy of the EDC form will be placed in the employee’s Human Resources file. Payroll will cease payment at the end of the provided term unless the administrative supervisor notifies Payroll in writing of earlier conclusion of the interim duty.
   2. The approved EDC for a single assignment shall be promptly submitted to Human Resources for processing through Payroll. The administrative supervisor will monitor the employee’s progress and once the employee has completed the single assignment, the administrative supervisor will provide prompt written confirmation to Payroll to cease payment if the assignment is completed prior to the date listed on the EDC. A copy of the EDC form will be placed in the employee’s Human Resources file.
   3. The approved EDC form for an occasional service shall be promptly submitted to Human Resources for processing through Payroll. The administrative supervisor will monitor the employee’s progress and once the employee has completed the service(s), the administrative supervisor will provide prompt written confirmation to Payroll to cease payment if the assignment is completed prior to the date listed on the EDC. A copy of the EDC form will be placed in the employee’s Human Resources file.
   4. The approved ATC shall be promptly submitted to Human Resources for processing through Payroll. The additional teaching duties will be monitored by the supervising department chair or school director. A copy of the ATC form will be placed in the employee’s Human Resources file.
8. Administrative supervisors are responsible for calendaring the end of additional duty service and/or calendaring the need for new EDC or ATC forms. The administrative supervisor must complete any new EDC or ATC forms in a timely manner in advance of new requests for EDC or ATC approval.
9. Administrative supervisors must promptly notify Human Resources by written correspondence that an interim duty or occasional service has been concluded for an employee and payment should cease.
10. The employee is responsible for promptly notifying the administrative supervisor and Human Resources when the approved Additional Duty service has been concluded and payment should cease.
11. Once Human Resources is notified of the conclusion of an Additional Duty service, Human Resources will ensure payments will no longer be issued to employees, and the notifications received will be placed in the employee’s Human Resources file.

F. Repayment of Improperly Received Funds

1. If employees receive funds to which they are not entitled – whether due to payroll error, overpayment, reimbursement mistake, or any other administrative or accounting error – the employee is required to promptly return the overpaid or improperly received amount to the university.
2. Upon discovery of such an overpayment or improper payment, Human Resources will notify the employee in writing and provide details regarding the amount, the reason for the overpayment, and the method of repayment.
3. The university, to the extent permitted by law, will recover the funds through one or more of the following methods:
   1. Payroll deduction;
   2. Direct repayment from the employee; or
   3. Offset against future payments.
4. Employees are expected to cooperate fully with the university in resolving overpayments.

G. Ongoing Monitoring

Additional Duty service for Extra Compensation requires continuous oversight. The services must remain temporary and appropriate. Key elements that should be monitoring these services include supervisor and Human Resources/Payroll monitoring. Each year in May, Human Resources/Payroll will generate a report listing individuals that received Extra Compensation and provide the report to the Vice President of Business, Finance and Facilities for review by the President.

EXCLUSIONS AND SPECIAL CIRCUMSTANCES

1. Individuals that are either previous or future employees of the university are not eligible to be compensated with an EDC/ATC. Activities performed for compensation must occur through employment with an active appointment on university payroll. All IRS regulations governing employment versus contractual services, as well as state and university policies and regulations, apply and govern the decision of the type of payment authorization.
2. Except for interim duties, academic administrators at the level of Dean or higher, including administrators in the Provost’s and President’s Offices, as well as President’s Cabinet members, are ineligible to receive extra compensation from the university. Annual compensation for these administrators should reflect all their responsibilities.
3. Except for an approved interim duty or ATC described in this policy, hourly employees are not eligible for Extra Compensation as they receive overtime if they work more than 40 hours in a work week.
4. An employee with a service contract or independent contract with the university that requires remuneration outside of the regular appointment must refer to contractual service policy.
5. Temporary employees, student employees, and graduate assistants are not eligible for extra duty compensation.
6. The University President has sole discretion to waive the Extra Duty Compensation process.

CONSEQUENCES

All compensation will be reported to the State of Kansas for tax reporting purposes. Depending on the type of work performed, individuals may receive a W-2 and 1099 for tax reporting purposes.

Employees in violation of this policy may receive disciplinary action, up to and including termination of employment.