Administrative Procedures

Ten and Eleven Month Employee Compensation Procedure

1. Purpose

This procedure describes how KCTCS administers pay for faculty or staff with assignment periods of 10 or 11 months but paid over 12 months.

2. Scope

This procedure applies to all KCTCS employees who have an assignment period of 10 and 11 months but are paid over 12 months and the employees who are responsible for administering pay.

3. Definitions

1. Academic Year: August 1 through May 31.
   
   
2. Annual Salary: The gross pay, before taxes and other withholdings, offered to the employee for the work performed for KCTCS during the fiscal year, July 1 to June 30.
   
   
3. Appointment/Contract Period: The period of time for which the terms of the employment contract are in effect.
   
   
4. Assignment Period: The period of time during which the employee is expected to perform work for KCTCS.
   
   
5. Compensation: Salary payments made to employees in accordance with the pay cycle established in Administrative Policy 2.15.1.1.
   
   
6. Earnings: Portion of Compensation due to employees based on the percentage of the Assignment Period completed/worked.
   
   
7. FAC Pay: A term used in PeopleSoft to define an adjustment made by KCTCS during the employee’s first year of employment to ensure their compensation equals their earnings.
   
   
8. Employee Obligation: The sum an employee owes to KCTCS if they separate from employment prior to the end of the Appointment/Contract Period if their compensation exceeds their earnings as of the date of separation.
   
   
9. KCTCS Obligation: The sum KCTCS owes to the employee if the employee separates from employment prior to the end of the Appointment/Contract period if their earnings exceed their compensation as of the date of separation.
   
   
10. Separation Date: The date an employee voluntarily or involuntarily separates from service, for causes such as retirement, resignation, or termination for disciplinary reasons, failure to fulfill the terms of the contract, or other terminations initiated by KCTCS.

4. Procedure

KCTCS offers employment contracts for periods of time of 10 or 11 months in each fiscal year for both faculty and exempt staff positions. KCTCS annualizes salary over 12 months even though the employee is performing work for less than 12 months; therefore, at most pay periods in the fiscal year, the employee’s earnings and payment amounts are not equal. Because part of the employee’s compensation is paid before it is earned, the employee’s compensation will exceed their earnings until the end of the Fall Semester, the midpoint of the academic year. For Spring Semester, earnings will exceed compensation until the final paycheck for June 30 is issued on July 15, at which time earnings and compensation will be equal for the Appointment/Contract Period.

4.1 Calculation of Compensation

1. Employees on 10- or 11-month assignments receive compensation in equal semi-monthly payments over a 12-month period beginning July 1 and ending June 30.  (See Example A) This payment structure:
   
   
   1. Allows employees to receive a paycheck in a consistent amount and to cover payment of the employee share of fringe benefits such as health insurance, retirement contributions, etc.
      
      
   2. Means that the employee is receiving compensation both prior to the beginning of and after the completion of their Assignment Period.
      
      
2. In the first year of employment, 10- and 11-month employees who start after July 1 will receive compensation on a prorated amount based on the amount of their assignment worked during the first year of employment using FAC Pay. (See Section 5, Example B)

4.2 Effects of Early Termination on Calculation of Compensation

If an employee with a 10- or 11-month assignment period works less than the entire assignment period, appropriate adjustments of compensation or earnings are required so that compensation equals earnings through the employee’s Separation date..

1. An employee obligation occurs when the employee has been paid more in compensation than they were due in earnings at the Separation Date. KCTCS will either deduct the employee obligation from any final payment or require the employee to repay the obligation within 30 days of the Separation date. (See Section 5, Example C)
   
   
   1. 11-month contract employees paid over 12 months will have their earnings vs. compensation calculated upon termination.  If an employee obligation exists, it should be repaid to KCTCS within 30 days of the Separation date. (See Section 5, Example F)
      
      
   2. Exceptions: The College President or supervising Cabinet Member at the System Office may authorize a waiver of repayment if doing so may have future benefits for the institution.
      
      
2. A KCTCS obligation occurs when the employee has been paid less in compensation than they were due in earnings at the Separation date. The KCTCS obligation will be calculated based on the employee’s established deductions and taxes. (See Section 5, Example E)
   
   
   1. If 10-month contract employees separate in December prior to Institutional Close but they have completed all their contractual obligations for Fall Semester and are otherwise released from their duties, they will receive final payment for the remainder of their earnings for completing 50% of their annual assignment period that they are due for Fall Semester. This payment may occur after Institutional Close, but reflects KCTCS pay dates, not the employee’s eligibility for Institutional Close pay. (See Section 5, Example D)
      
      
   2. 11-month contract employees paid over 12 months will have their earnings vs. compensation calculated upon termination.  If a KCTCS obligation exist, it will be paid on the employee’s final check.

5. Examples

1. Continuing Employment
   
   • Jane Doe was hired in a prior fiscal year as a 10-month faculty member and will be continuing employment through the end of the next fiscal year.  Her annual wage is $42,000.
   • Jane earns $4,200 per month during her assignment period August-June (10 months) for a total of $42,000 (earnings).
   • Since her compensation in the current fiscal year is spread over 12 months, Jane  will receive 24 salary payments of $1,750 for a total of $42,000 (compensation).
     
     
2. FAC Pay
   • John Doe was hired on October 1, with an annual salary of $50,000.
   • John will earn $5,000 per month during his assignment period October – May (8 months) for a total of $40,000 (earnings).
   • John will receive 18 pay checks of $2,083.33 plus 18 FAC adjustments of $138.90 for a total of $40,000.14 (compensation).
     
     
3. Separation Before the End of Fall Semester
   • Jamie Doe was hired as a 10-month staff member on August 1, 2019, and separated from employment on 10/01/2022 with an annual salary of $45,000.
   • Jamie will earn $4,500 per month during her 2022-2023 assignment period August – September (2 months) for a total of $9,000 (earnings).
   • Jamie will receive 6 salary payments during the 2022-2023 contract period of July – September (3 months) of $1,875 for a total of $11,250 (compensation).
   • Jamie has an obligation to KCTCS of $2,250 which should be paid no later than November 1, 2022.
     
     
4. Separation at the End of Fall Semester
   • Janet Doe was hired as a 10-month staff member on 08/01/2019 and separated from employment on 12/31/2022 with an annual salary of $42,000.
   • Janet will earn $4,200 per month during her 2022-2023 assignment period August – December (5 months) for a total of $21,000 (earnings).
   • Janet will receive 12 salary payments during the 2022-2023 contract period of July – December (6 months) of $1,750 for a total of $21,000 (compensation).
   • Neither Janet nor KCTCS has an obligation.
     
     
5. Separation Before the End of Spring Semester
   • James Doe was hired as a 10-month staff member on August 1, 2019, and separated from employment on 05/01/2023 with an annual salary of $42,000.
   • James will earn $4,200 per month during his 2022-2023 assignment period August – April (9 months) for a total of $37,800 (earnings).
   • James will receive 20 salary payments during the 2022-2023 contract period of July - April of $1,750 for a total of $35,000 (compensation).
   • KCTCS has an obligation to James of $2,800 which is payable on his final check dated May 15, 2023.
     
     
6. 11-Month Separation
   • Joe Doe was hired as an 11-month staff member on August 1, 2019, and separated from employment on 01/31/2023 with an annual salary of $38,000.
   • Joe will earn $3,454.55 per month during his 2022-2023 assignment period August-January (6 months) for a total of $20,727.30 (earnings).
   • Joe will receive 14 salary payments during the 2022-2023 contract period of July-April of $1,583.33 for a total of $22,166.62 (compensation).
   • Joe has an obligation to KCTCS of $1,439.32 which should be paid by March 1, 2023.