Standard Salary Calculation Formula

The following formula is used to calculate a new base salary when multiple increases are involved:

Base + Promotion 10% + Merit

Note: COLA calculation is listed in section below.

Cost of Living Adjustment (COLA) Calculation Formula

Cost of Living Adjustment (COLA) is calculated as follows:

(Old Base + Merit + Promotion) * COLA%

Example(50,000 + 1,000 + 2,000 = 53,000) * .04 = COLA of 2,120

Old Base Salary = 50,000.00

Merit = 1,000

Promotion = 2,000

COLA% = 4%

Equity = 1,500

Note: Equity is not included in the calculation to determine COLA.

Administrator Return to Teaching Salary (ARTS) Calculation Formula

An ARTS base salary is the negotiated academic year salary for an administrator when the administrative position was accepted. ARTS are notated in the remarks section of the employment document. An increase to an employee's ARTS is handled independently, yet in the same manner as their "A" base salary. The method is as follows:

Old "A" Base + Merit + Promotion + COLA + Equity = New "A" Base

Old "ARTS" Base + Merit + Promotion + COLA + Equity = New "ARTS" Base

Example90,000 + 1,000 + 0 + 3,640 + 0 = 94,640 (New "A" Base Salary)

65,000 + 1,000 + 0 + 2,640 + 0 = 68,640 (New "ARTS" Base Salary)

Old "A" Base Salary = 90,000.00

Old "ARTS" Shadow Base Salary = 65,000.00

Merit = 1,000

Promotion = 0

COLA% = 4%

Equity = 0

Note: COLA calculation is listed above.

"B" Shadow Base Salary Calculation Formula

A "B" shadow base salary is the academic year salary for a faculty member who has taken on administrative duties and is now paid on an "A" base salary or fiscal year salary. The "B" base salary, for these employees, has been increased to a factor of 1.2 to compensate for the added responsibilities and time commitment. An increase for an employee who is being compensated on an "A" base salary and has a "B" shadow base Salary is calculated as follows:

Old "A" Base/1.2 = Old "B" Shadow Base

Old "B" Shadow Base + Merit + Promotion + COLA + Equity = New "B" Shadow Base

New "B" Shadow Base X 1.2 = New "A" Base

Example60,000 / 1.2 = 50,000

50,000 + 1,000 + 2,000 + 2,120 + 1,500 = 59,620 (New "B" Shadow Base Salary)

59,620 X 1.2 = 71,544 (New "A" Base Salary)Old "A" Base Salary = 60,000.00

Old "B" Shadow Base Salary = 50,000.00

Merit = 1,000

Promotion = 2,000

COLA% = 4%

Equity = 1,500

Note: COLA calculation is listed above.

Calculating "A" Contract (Fiscal Year) Salaries with Mid-month Starting or Ending Pay Period Dates

Faculty salaries are paid on a monthly basis (the monthly pay period is from the 1st of the month through the last day of the month). At times appointments begin or end in the middle of a month. To calculate the correct amount to include in your document total, use the following calculation.

(Monthly pay period amount * number of full pay periods) + prorated pay period amount(s).

The following formula is used to prorate a mid-month amount for salaries starting or ending in the midst of a month.

(Annual full-time salary * retirement factor (if applicable) * FTE of employee/12) rounded to the nearest cent = Monthly Pay Period Amount

(Monthly Pay Period amount/# of workdays in the pay period being prorated) rounded to the nearest cent = Daily Rate

Daily Rate * # of workdays employee in paid status = Prorated amount

ExampleAn employee on an "A" contract starts February 17, 2004. There are 20 working days in February. The employee is on contract for nine of the days in February.

Start date: 2/17/04

End Date: 6/30/04

Base Salary: $40,000.00

Monthly Pay Period Amount: $3,333.33

Number of work days in pay period to prorate: 20

Daily Rate: $166.67

Number of days employee under contract: 9

Proration for February: $1,500.03

Contract total with additional un-prorated pay periods: $14,833.35

Note: Workdays are all days in the month excluding weekends. Holidays are included but an employee cannot start on a holiday.

Calculating "B" Contract (Academic Year) Salaries with Mid-semester Starting or Ending Pay Period Dates

Faculty salaries are paid on a monthly basis (the monthly pay period is from the 1st of the month through the last day of the month). Academic year appointments are based upon the academic calendar. They are not under contract the full fiscal year and prorations of a semester must reflect the percentage worked. At times, appointments begin or end in the middle of a semester. To calculate the correct amount to include in your document total use the following calculation.

(Semester rate / number of work days in semester) * number of workdays employee is under contract.

The following formula is used to prorate a semester amount for salaries starting or ending in the midst of a semester.

(Annual full-time salary * retirement factor (if applicable) * FTE of employee/2) rounded to the nearest cent = Semester Amount

(Semester Amount/# of workdays in the semester being prorated) rounded to the nearest cent = Daily Rate

Daily Rate * # of workdays employee in paid status = Prorated Semester amount

ExampleAn employee on a "B" contract starts February 10, 2004. There are 84 working days in the spring semester. The employee is on contract for 64 of the days in the semester.

Start date: 2/10/04

End Date: 5/17/04

Base Salary: $48,000.00

Semester Rate: $24,000.00

Number of work days in semester: 84

Daily Rate: $285.71

Number of days employee under contract: 64

Proration for Semester: $18,285.44

Note: Workdays are defined on the academic year calendar. Visit the office of the executive vice president and provost to view the calendar.

Calculating Fringe Inclusive Salary Modifications

The following formula is used to calculate a fringe inclusive modification to an existing salary.

Monies awarded/(1 + Fringe Rate for employee type) = Gross Amount Available to Pay

ExampleEmployee Type: Faculty Position (Professional Contract)

Monies Awarded: $3,000.00

Fringe Rate: 13.31%$3,000/1.1331 = $2,647.60 gross could be paid

Current fringe rates

Calculating Budgeted Salary and Fringe

The following formula is used to calculate how much money would be needed to fund a salary and associated fringes when proposing a position.

Proposed Salary + (Proposed Salary * Fringe Rate for Employee Type) + Health Insurance if applicable = Amount Needed to Fund Position

Example 1Employee Type: Faculty Position (Professional Contract)

Proposed Salary: $35,000.00

Fringe Rate: 13.31%

Health Insurance cost: $5,590$35,000 + ($35,000 * .1331) + $5,590 = amount needed to fund position

$35,000 + ($4,658.50) + $5,590 = $45,248.50 needed to fund position

Example 2Employee Type: Letter of Appointment (one month temporary part-time appointment)

Proposed Salary: $2,000.00

Fringe Rate: 9.51%

Health Insurance cost: Not Applicable$2,000 + ($2,000 * .0951) = amount needed to fund position

$2,000 + ($190.20) = $2,190.20 needed to fund position

Letter of Appointment, Position Numbers, and Calendar

Letter of Appointment Calculations

To confirm the academic fall and spring semester monthly rates, use the calculator provided. To confirm FTE for all other letter of appointments, reference the FTE weekly chart.

Position Numbers

Each department is assigned a position number to use when processing Letter of Appointments. Find your position number.

Academic Year Calendar

The academic year calendar gives you the dates to use for fall and spring letters of appointment, references contract obligation dates, and provides the semester instruction dates. Visit the office of the executive vice president and provost to view the calendar.