Academic Year Salary Reserve Payment Option
The Academic Year Salary Reserve Payment Option is available to nine-month employees on regular appointments. This payment option assists employees who are paid over the academic year and wish to set aside a portion of their biweekly pay in order to have their deferred funds paid back to them during the summer months on regularly scheduled pay dates.
- Under the program, employees may elect an amount they desire to be withheld from their paychecks throughout the academic year for their summer reserve.
- Use the Savings Calculator (xls) to calculate the reserve amount. Contact Human Resources for assistance, if needed.
- Employees will need to complete an Academic Year Salary Reserve Payment Option agreement and specify an amount to be withheld from each pay check of the academic year on an after-tax basis.
- The amount specified on the agreement will appear on the pay check as an agency deduction. The deduction will be held in a reserve account.
- Employees enrolled in this option must continue the deduction for the entire academic year. In the event of the employee’s separation from employment prior to the end of the academic year, any reserved amounts will be paid within 60 days from the date of separation.
- Beginning with the first biweekly pay period following the end of the academic year, the employee will receive equal installments on the regularly scheduled summer pay dates. Summer health and life insurance premiums will be deducted from the salary reserve on an after-tax basis.
- Employees are required to re-enroll in this salary payment option each academic year.
The Academic Year Salary Reserve Option does not pay interest on the amount held in the reserve account. Before selecting this option an employee may want to consider taking advantage of depositing this amount into an interest-bearing account with a financial institution via direct deposit.
If you wish to participate in the Academic Year Salary Reserve Payment Option, complete the Academic Year Salary Reserve Payment Option agreement and submit to Human Capital Services, 103 Edwards Hall.
You may contact Human Capital Services, Payroll at (785) 532-6277 or e-mail email@example.com, with any questions.