Compensation Planning Concepts_

HCP Forms for Planning Compensation

There are three different forms in HCP where compensation is planned:

• Manage Existing Employees and Job Codes. This task is used to plan for individual faculty and staff employees that are already employed and for positions that are to be hired.
• Create and Manage HCP Pooled Positions. This task is used to plan for a fluctuating population of employees in a lump sum rather than by individual. Pooled position planning is used for graduate student researchers and instructors, faculty lecturers, per diem employees, and others.
• Dept ID Comp Adjustments. This to capture material monthly $ amounts that are not reflected in employee or pooled positions plans. Examples include stipends, vacancies and budget reductions.

Compensation Expense

HCP calculates compensation expenses for employees. Compensation expense is the sum of salary expense, benefits, and payroll assessments including:

• Salary Expense
• Benefits Assessment – Account 53070
• General & Employee Liability Insurance (GAEL) – Account 57310
• UCRP Supplemental Assessment-Interest – Account 53709

Level of Detail for Human Capital Planning

Regardless of the form you are using to plan, all compensation expenses are planned at the lowest level intersection of:

• Entity (DeptID)
• Fund
• Chart1

Planning for Existing and To Be Hired Employees

Calculating Salary Expense

Salary expense is equal to the product of an employee’s monthly pay rate and the distribution percentage. For example:

Monthly Pay Rate * Distribution % = Salary Expense

$10,000 * 0.80 = $8,000

$12,000 * 0.75 = $9,000

$12,000 * 0.25 = $3,000

A distribution percentage will not be equal to 1.00 when:

• Employee works part time
• Employee has a split appointment
  • Across DeptIDs
  • Across Funds
  • Across Chart1s

A distribution must be created for each unique intersection of DeptID, Fund and Chart1 for an employee. An employee that works full time whose compensation is paid from a single Dept ID, a single fund, and a single Chart1 will have a distribution of 1.00.

Distributions Examples

There are two DeptIDs in this department: 1_10045 and 1_10046. The planner has access to all of the Dept IDs in the department.

• Suneel’s compensation expense is split between two Dept IDs within the department: 10045 and 10046. Planners will see distributions for all Dept IDs within their planning access. If part of Suneel’s comp was paid by another division, this planner would only see the portion paid by their division.
• Crystal’s compensation expense is paid from one Dept ID but is partially paid by a Designated Fund; thus the need for two distributions.
• In general, the total of all distributions for an employee should not exceed 100%. In the case of a stipend, planners may use a Dept ID Compensation Adjustment to plan for this compensation.

Caution

To calculate salary expense, HCP must have a monthly pay rate and a distribution for an employee in the same Dept ID. If either of these are missing, there will be no salary expense for the employee in the Dept ID.

Next Topic: Manage Existing Employees