Compensation and Benefits
Use the formulas below to calculate your standard hourly and biweekly pay based on your annual salary.
Hourly rate = Annualized Pay divided by 2080
Biweekly rate = Annualized Pay divided by 26
NOTE: Formulas are based on years with 26 pay periods. Some years will have 27 pay periods. Refer to the Calendar for number of pay periods in a specific year.
In accordance with the Fair Labor Standards Act, overtime (OT) pay is calculated using the following formula:
[(Reg Hrs x Hourly rate) + (OT Hrs x Hourly rate) + (Premium Pay) ] / [Reg Hrs + OT Hrs] = FLSA Rate
(OT Hrs x Hourly rate) + (OT Hrs x .5 x FLSA Rate) = Overtime Earnings
- Currently, the University of Kansas allows one overtime rates at one at time-and-a-half (1.5- OTP).
- Overtime pay must be calculated separately for each standardized work period.
- Non-exempt employees who are employed in multiple positions and whose total hours worked exceed the FLSA limit during the work period are eligible for overtime, which must be recorded as Overtime-Multiple Positions (OTM). The department(s) involved will need to calculate the overtime and enter the flat amount and the associated hours on the time sheet.
If funding is available, eligible non-union covered Unclassified Support Staff (USS) may receive longevity pay. Annual longevity bonus payments are computed by multiplying the number of years of service by $50.00. Years of service cannot exceed 25 years. The Date of Service can be found on the Employment Data panel in the Job Data window (KSA 75- 5541).
Longevity Pay is included for overtime calculations — shown as Overtime Differential pay (ODP) earnings in the same pay period the longevity is paid.
Longevity Pay / Total Hours Worked in Year = Increase in Hourly Rate
More information is available on the Human Resource Management Staff Merit Increase webpage.
Shift Differential Rate x Hours
Current Shift Differential Codes and Rates:
- SF1 $0.30
- SF2 $0.40
- SF9 $0.60
A garnishment is an employee-only deduction that can be a flat amount or percentage-based, as required by a court order. Documents must be received by the State of Kansas Payroll Office from the proper officials before the withholding can start or stop. Please contact the Payroll Office for additional information.
Worker's Compensation Insurance (WCI) = Employer contribution only.
Benefit Gross X rate established by the Division of Accounts and Reports.
Please see the fringe benefit rates page for current employer charge.
Employer contribution only for non-student employees. See the Fringe Benefit Rates list for the current rate.
UCI Gross = All earnings codes that add to gross pay (including fringe benefit income) with the following deductions subtracted:
- Before Tax Health Insurance
- Flexible Spending Account Contributions (health or dependent care)
- Before Tax Parking
- Adjustment Earnings Codes (ADJ, PRB)
- Non Resident Alien pay (NR4, NR5, N9R) .
- Student Pay (SP1, K13)
Federal Work-Study (FWS) is a federally subsidized program designed to promote part-time employment of financially eligible students to help avoid excessive debt while in school. If FWS is a part of your financial aid awards, you may apply for the on-campus jobs for work-study students.
Working at an hourly rate, you are allowed to earn the total work-study amount granted to you. While all employers must pay KU campus minimum wage, pay varies depending on the job and your qualifications. Visit the Financial Aid & Scholarships Federal Work-Study page for more information.
GHI can include medical, dental, and vision insurance.
Employee and employer premiums, as well as before-tax or after-tax status, are based on the coverage/plan in which the employee elects to participate. GHI premiums will be deducted from 24 bi-weekly payroll periods. GHI will not be taken on the 3rd check issued in a month.
Taxable Group Life Insurance Gross = Annual Benefits Base Rate. **This calculation method is for classified and unclassified employees, a different method is used for Faculty (LFC). Please contact the Payroll office for more information.
The Annual Benefit Base Rate is calculated by taking the compensation rate times 26 or 2080 depending on whether the employee is exempt or nonexempt. It currently does not include any additional earnings such as longevity, shift, overtime, etc. Internal Revenue Service Code Section 79 requires inclusion in an employee federal and state taxable gross the cost of group term life insurance coverage in excess of $50,000 provided to an employee by an employer. Employees covered by KPERS death and disability insurance being paid more than $1282.05 per bi-weekly pay cycle (based on 26 pay dates) are subject to the provisions of Code Section 79.
Taxable group life insurance is calculated as follows: Step 1. (Annual TGL gross*) x 150%) - 50,000 = Calculate taxable coverage Step 2. (Taxable coverage/$1,000) x age rate = Imputed Income Step 3. Multiply the amount arrived at in Step 2 by 12 and divide this result by the number of payroll periods in the year (26).
*annual salary amount
The uniform premiums prescribed by the IRS regulation are available on the Human Resource Management Benefits website.
Flexible Spending Account deductions are an employee only deductions. It is a flat amount selected by the employee through the health insurance enrollment process.
- HCARE Health Care FSA
- DCARE Dependent Care FSA
The arrearage collection process occurs when a paycheck is adjusted that creates an amount owed by the employee to the University.
The Payroll Office typically receives paperwork from Human Resources, HR Pay, or Staff Benefits requesting a specific adjustment for the employee. We process these requests during our adjustment cycle, which happens once per pay period.
Although an arrearage may not have occurred due to any action by the employee, the employee is responsible for the amount owed. There are many different causes of an adjustment that could cause an arrearage. Here are some common reasons:
- A change to a timesheet
- Late reporting of time
- Change in FICA status
- Late enrollment in health insurance or retirement benefits
- Adding a spouse or dependent to health insurance
- Waiting period for health insurance waived
- Late notification of a termination date
- Late notification of a salary/pay rate change
- Late notification of leave without pay
After the adjustment cycle has closed, the employee will receive an email and a letter by mail regarding the adjustment made to the paycheck(s). The email and letter give the specific information for each employee including:
- Pay periods affected
- Paycheck dates affected
- Gross amount of the adjustment
- Net amount of the adjustment due to the University
- Reason for the adjustment
- Payment options
- Response date / due date
The employee only owes the net amount of the adjustment. The gross amount of the adjustment is given for the employee’s records as this amount is subtracted from the year-to-date income and W-2 income.
The employee’s active or termination status with the University does not release responsibility for the amount owed. See the KU Payroll Related Arrearage Collection Policy for more information.
If an employee or former employee does not make payment, a second letter and email will be sent. The second letter gives the same information as the first, as well as notifying the employee of the date that the debt will be transferred to Student Account Services for collection if it has not been paid. Please refer to the Student Account Services website for information related to their collection procedures.
KU Payroll can accept arrearage payments online with a credit card or electronic check or by check or money order in our office. Cash payments are not accepted.
Employees who have arrearage balances due are notified directly by KU Payroll via email and a mailed letter. See the Arrearage Collection Process for more information.
Online payments for arrearage balances via electronic check or credit card can be made through the KU Payroll Receivable online portal.
Please have the following information ready:
- KU Employee ID Number
- Amount Due*
- Payment Method
The KU Payroll Receivable portal is for KU Payroll arrearages only. Please do not make any other type of payment through this service. If you are unsure if your payment is for a Payroll arrearage, please contact our office by phone or email before making the payment.
*There is a $5,000.00 limit for each transaction on the portal. If the balance owed is greater than $5,000.00 you will need to complete multiple transactions.
Check or Money Order Payment
Check or money order payments can be made by:
- Appointment in our office
- Mail Payment
In-Person by Appointment
The dropbox is a depository located on the east side of Carruth O'Leary, built into the back of the building on the loading dock. The depository door needs to be pulled down until you see a space open, drop the envelope in the space, and push the door up all the way to close.
Your payment should:
- Be in an envelope marked for Payroll.
- Include the employee's legal name.
- Include the purpose of the payment (ie. arrearage payment)
1246 West Campus Road, Room 236
Lawrence, KS 66045