NCAS

Effective Date: 07/01/05

Teacher Pay

Policy Statement

It is the policy of the State of North Carolina that certain types of pay will be utilized by the payroll system which differentiate between appointment type and years of service. The Central Payroll Division prescribes processing standards for teacher pay.

Authoritative References

G.S. 126 State Personnel System

G.S. 143B-426.39 Powers and Duties of the State Controller

State Personnel Manual

Explanation of Policy

Salaried Teacher Pay

Salaried positions include full-time or part-time teachers in permanent, time-limited, probationary, and trainee positions. Salaried positions are either Exempt from the Personnel Act (EPA) or Subject to the Personnel Act (SPA). For EPA teachers, State Personnel policies concerning hiring, removal from a position and appeal rights do not apply.

Salaried teachers are processed on a repeating payroll and paid on the monthly payroll cycle. Benefits for salaried teachers vary, based on the amount of time worked. Full-time salaried teachers earn all regular state employee benefits. Other levels of employment include the following:

Part-Time Teachers

Working 30 - 39 Hours per Week for at Least 9 Months: Teachers earn prorated leave benefits, total state service credit, retirement credit, health benefits and, when applicable, severance pay and priority re-employment consideration.
Working 20 - 29 Hours per Week: Teachers earn prorated leave benefits, total state service credit and, when applicable, severance pay and priority re-employment consideration. Teachers do not receive retirement credit or health benefits, but may belong to the group health plan by paying the full insurance premium (employee and employer portion) themselves.
Working Less than 20 Hours per Week: Teachers earn no benefits, and if the employee's work schedule is irregular, or the employee has no set work schedule, then these positions may be paid as hourly teachers instead of salaried teachers. Payments for these positions are processed on a repeating payroll and paid on the mid-month temporary payroll.

Each type of salaried position should be coded to the correct account when processed on the State Personnel System and on the Central Payroll System to ensure uniformity of financial reporting. The statewide chart of accounts related to salaried EPA positions is shown below:

EPA Teaching Positions
Account(s)	Description
531150	EPA Teaching Salaries & Wages - Universities
531151	EPA Teaching Salaries & Wages - Appropriated
531152	EPA Teaching Salaries & Wages - Receipts
531153	EPA Teaching Salaries & Wages - Undesignated
531154	EPA Time-Limited Teaching Salaries - Appropriated
531155	EPA Time-Limited Teaching Salaries - Receipts
531156	EPA Time-Limited Teaching Salaries - Undesignated

A different chart of accounts is used to record salaried SPA positions:

SPA Teaching Positions
Account(s)	Description
531251	SPA Teaching Salaries & Wages - Appropriation
531252	SPA Teaching Salaries & Wages - Receipts
531253	SPA Teaching Salaries & Wages - Undesignated
531257	SPA Time-Limited Teaching Salaries - Appropriated
531258	SPA Time-Limited Teaching Salaries - Receipts
531259	SPA Time-Limited Teaching Salaries - Undesignated

Salaried teachers are taxed according to the exemptions claimed on W-4 and NC-4 withholding forms.

For information on statewide chart of account definitions, refer to:

http://www.ncosc.net/sigdocs/sig_docs/data_elements/account/sigExpenditure_Accounts.html

Teacher Supplements

Teacher supplements are an addition to a teacher's regular monthly pay. The supplement is not included in the total amount of the teacher's annual salary and is paid at 5% of the teacher's annual salary on the monthly payroll. Classifications that are eligible for supplement pay include:

Teachers
Vocational teachers
Guidance counselors
Librarians
School psychologists
Lead teachers

The Personnel Office is responsible for notifying the Payroll Office of the teacher's eligibility for supplement pay by submitting a PD-105 that details the annual supplement amount. The Payroll Office must calculate the monthly portion of the supplement to pay based on the PD-105 form.

Teacher supplement pay is recorded using one of the following accounts:

Account(s)	Description
531254	SPA Teaching Supplement - Appropriation
531255	SPA Teaching Supplement - Receipts
531256	SPA Teaching Supplement - Undesignated

Authorizations for teacher supplements must be resubmitted at the beginning of each fiscal year (July payroll) by the Personnel Office.

Teacher Additive Pay

Some educators are eligible for additive pay based on their license or degree. The Personnel Office determines if an employee should receive additive pay and submits a PD-105 to the Payroll Office indicating the amount of additive pay.

Additives are included in a teacher's regular pay and are included in the teacher's regular salary line item on the Central Payroll System. The additive may be keyed each month or it can be set as a repeating split line. It must be verified each month and manually removed when the payment is complete.

If the teacher is a ten or eleven month employee paid over twelve months, then the additive is calculated as follows:

Mentor Pay

Some educators are entitled to receive mentor pay at the end of the fiscal year (June). Mentor pay is $100 per month, not to exceed $1,200.00 per year. It is paid as one lump sum at the end of the year and is paid on the teacher's monthly payroll. Mentor pay is coded to the following account:

Account(s)	Description
531251001	SPA Teaching Salaries & Wages - Mentor Pay

Teacher Installment Payments

Universities and some other state entities employ instructional staff members that work for a nine-, ten-, and eleven-month period, but whose contract salaries are annualized, or paid over a twelve-month period. The methodology for processing these payments varies, based on the institution.

Installment Employment - Contractual Services for a Defined Number of Months

Installment employees, as found in the university environment, consist of exempt instructional staff that are contracted to work for a defined number of months. Eligible employees whose contracts are for nine-, ten- or eleven-month periods may be provided the option of being paid their contract value over a twelve-month installment period instead of the contract period. The monthly installment amount is calculated by dividing the employee’s school year salary by twelve. The employee’s earned monthly rate, which is different from the installment monthly rate, is calculated by dividing the employee’s school year salary by the number of months in the school year, as seen below:

Docked Pay
Any docked pay is processed in the same manner as other state employees except that the docked pay is calculated using the employee’s earned monthly rate, not the installment rate of pay, as shown below:

Docked pay is adjusted against the employee’s monthly installment rate as follows:

Health Benefits
Installment employees are eligible to receive health benefits for the entire twelve month installment period.

Installment Employment - Contractual Services for a Defined Number of School Year Days

State agencies that employ educational classes of employees whose salaries are determined in the same manner as corresponding public school employees in accordance with G.S. 115C, are contractually engaged for a set number of days in a school year instead of a pre-determined number of months. Any such employees that may elect or are mandatorily required to accept payment for services over a twelve month period will be paid the school year salary amount divided by twelve months.

The calculations required for the installment payments of 10-month and 11-month employees beginning with the 2006 - 2007 school year follow:

Monthly Installments
All 10-month and 11-month G.S. 115C employees for whom 12-month installment payments are mandated will be paid one-twelfth (1/12) of their contract amount for twelve months, except where an adjustment is required in the twelfth month to realign the year-to-date installment amount to the accumulated actual amount earned.

Actual Earnings
The calculation of actual earnings is based on a daily pay rate multiplied by the number of work days in each month. The daily pay rate is rounded to thousandths before the calculation of earnings.

Escrow Balances
Agencies are required to maintain escrow balances that reconcile actual earnings and installment payments for these employees. Escrow balances are calculated using the following formula:

The escrow balance at the end of the eleventh-month installment payment is the amount of the twelfth-month installment payment. Salary rate changes during the school year will impact the amount of the final installment payment.

Teacher Supplements
Teacher supplements for installment employees are calculated in the same manner as the installment salary, with corresponding accounting of escrow balances for actual supplements earned.

Teacher Additive Pay
Teacher additive pay for installment employees is calculated in the same manner as the installment salary, with corresponding accounting of escrow balances for actual additive pay earned.

Docked Pay
An employee’s pay is docked for missed workdays not covered by sick or vacation leave. Docked pay is calculated using the daily rate of pay applied against the number of subject days, and is applied against the employee's installment payment as well as the employee's escrow balance.

Docked pay is adjusted against the employee’s monthly installment rate and actual earnings as follows:

The escrow balance is adjusted during the calculation of year-to-date installment payments and actual earnings.

Adverse Weather Leave
Adverse weather leave for G.S. 115C installment employees is regulated as follows:

Adverse weather leave cannot be paid out as vacation leave if the missed school days are rescheduled for another date.
Adverse weather leave is paid as vacation leave only if the missed day is a teacher optional workday.
Adverse weather make-up days are paid at the daily rate of pay in effect on the rescheduled work days, not on the rate that was in effect at the time the adverse weather occurred.

Legislative Salary Increases for Installment Employees
Legislative salary increases for installment employees that are effective on July 1 or any day prior to the beginning of the school year are applied to installment employees in the first month of the new school year, not during the remaining installment payments from the previous school year. An employee that resigns after the close of the previous school year and does not return to work within a minimum of one day of the start of the new school year is not eligible for the increase and will be paid all accrued vacation leave at the prior year daily rate of pay.

Legislative salary increases that become effective after the beginning of the school year impact the installment rate of pay on the date the increase is effective. The calculation of actual earnings is also adjusted to reflect the new daily rate of pay on the increase’s effective day. The escrow balance at the end of the eleventh-month installment payment will become the twelfth month installment payment, which will differ from the previous eleven monthly installment payment amounts.

Health Benefits
Installment employees are eligible to receive health benefits for the entire twelve month installment period.

Scope

This policy applies to all State entities using the Central Payroll System.

Exceptions

There are no exceptions to this policy

Glossary of Terms

Escrow balance - The accumulation of residual earnings owed to an employee that is paid on an installment basis, regardless of the number of days worked. The escrow balance consists of amounts earned by an employee that has not yet been paid. It is also referred to as a Balance of Contract by some state agencies.

Adopted: July 1, 2005

Version: 2005-0701.01