6.06.1—Additional Compensation Request

Effective: 03/01/2010
Senate Proposal: No
Responsible University Officer: Vice President for Administration
Responsible Office: Human Resources

Introduction

This policy is to ensure the University's compliance with federal regulations. The federal regulations state: "Incidental work (that is in excess of normal work for the individual), for which supplemental compensation is paid by an institution under institutional policy, need not be included in the payroll distribution systems described below, provided such work and compensation are separately identified and documented in the financial management system of the institution."

Process

Prior to the additional work being performed, the hiring department (whether the eligible employee's primary department or another department) does the following:

1. Complete the following on an Employee Status Change form, available from Human Resources, Forms and Information, Academic Humans Resources Forms' web site https://www.mtu.edu/hr/forms/ or by calling 7-2281:
   1. Enter the Employee Name and M Number.
   2. Enter the Contact Person's Department, Name and Phone Number.
   3. Indicate the Employee's Primary Position by selecting one of the three boxes.
   4. Enter the employee's Supervisor's name.
   5. Indicate the (all) Reason(s) for Status Change, by selecting the appropriate boxes and also selecting the "Additional Compensation".
   6. Enter a brief justification of the additional work situation in the Comments/Justification text box.
      • NOTE: A more detailed written justification must be attached.
   7. Enter the Start and End Date of additional work situation.
   8. Enter the Compensation Amount.
   9. Enter the Index(es))/Account Code(s).
   10. Select either "Change to" or "Add to Present Status" for the Effects of Change.
   11. Enter the "Department/Org #" under the Change to/Add to Present Status column if the additional work is being performed in another department other than the employee's primary department.
   12. Select the appropriate Service Basis.
   13. Enter the appropriate FTE% Effort (i.e. 30% for 12 hours a week of additional work).
   14. Enter all appropriate information depending on the type of situation (for example: if previously selected "additional appointment," add another rank/title, etc.)
   15. On page 2 of the form, select "Additional Compensation".
   16. Indicate whether or not the employee is currently being paid from sponsored account by selecting Yes or No.
   17. Indicate whether or not it is anticipated the employee will be paid form a sponsored account during the time period requested by selecting Yes or No.
2. Obtain approval from the department chair/director or higher in supervisory chain of command, and a countersignature, if required.
   • NOTE: When an employee's time and payroll dollars are to be charged to an index under the control of a department other than the one initiating the request, the department head of the second department must also approve this request.
3. Obtain approval from the next in line of the supervisory chain of command (form requires two signatures).
4. Forward the Employee Status Change Form to Human Resources for approval and processing.

Forms and Instructions

In support of this policy, the following forms/instructions are included:

Forms

• Employee Status Change Form

Appendices

• Faculty Handbook
• Account Code Listings Report
• How to Run Discover Reports
• OMB Circular A-21

Revisions