Payroll Calculations
Compensation Topics
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
NOTES:
- 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.
Guidelines for holiday pay are set by Human Resource Management. You can view employee eligibility, the holiday schedule, and the holiday policy on the Human Resources website.
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.
Benefits Topics
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.
For more information, please contact Human Resource Management benefits staff at 785-864-7402 or by email at benefits@ku.edu.
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.
For more information please contact Human Resource Management benefits staff at 785-864-7402 or by email at benefits@ku.edu.
Deduction Codes:
- HCARE Health Care FSA
- DCARE Dependent Care FSA