Twelve Month Payment Option for Nine Month Faculty
The Twelve Month Payment Option is open to all faculty members on a nine-month academic year appointment. It is an optional program designed as a savings method to help bridge the gap between the nine-month work year and the desire to have twelve months of income. The program will hold, in the form of an after-tax deduction, a portion of a nine-month faculty member’s after-tax income and distribute it to them in six equal installments during the summer months.
- An amount will be deducted from 18 paychecks from the first full paycheck of the nine-month academic year through the last full paycheck of the nine-month academic year.
- Electing a 12-month plan simply spreads the current nine-month salary over 12 months of pay periods. No additional salary is paid as a result of the election.
- The total amount of the deductions will be refunded in six equal payments during the summer providing income even if the faculty member has no summer appointments.
- If you receive summer salary, typically from grant support or a summer teaching assignment, the resulting salary will be paid as usual over the appropriate summer pay periods (on top of the deferred salary from the nine-month academic semesters).
- UF provides a Twelve Month Calculator for faculty to use to calculate the deduction amount, based on actual earnings and benefit rates. The Twelve Month Calculator allows faculty members to receive an average net paycheck amount for most of the year. However, any deduction amount may be submitted on the Twelve Month Payment Option Enrollment Form. There will be some variations in net pay due to benefit double deductions in the spring.
- Participation is voluntary and includes automatic re-enrollment.
- Choosing this approach does not trigger an assignment and effort report for the summer.
Twelve Month Payment Option for Nine-Month Faculty Enrollment Process
Nine-month faculty members on an appointed position may enroll in the voluntary, non-interest bearing program during the Annual Enrollment Period, which will be from July 1 -August 15.
Who may participate?
Faculty members on nine-month appointments may participate in the program. Adjunct faculty members are not eligible to participate.
If you are interested in participating, you should use the Twelve Month Calculator to help you estimate your deductions amounts in order to receive 24 paychecks with similar average net payments.
What are the parameters surrounding the Twelve Month Calculator?
- The deductions calculation will take into account benefit costs as of the prior January and February and will not reflect changes made during the Open Enrollment in the fall.
- The deductions calculations takes into account your W-4 payroll tax election as of the time that the estimate is prepared since your current net pay is the basis of the calculation.
- The deductions calculation is based only on the nine-month faculty appointment. Earnings from any additional temporary appointments you may have will not be included in the estimate calculations.
- Changes to salary, deductions, or W-4 payroll tax elections after enrollment will change your net pay. The deduction amounts cannot be adjusted should any of these variables change.
- The minimum deduction amount is $100.00 per pay period.
- After calculating your estimate using the Twelve Month Calculator, complete and electronically submit the Twelve-Month Payment Option Form. The form must be submitted by August 15.
Frequently Asked Questions
Can I enroll in the program at any time?
No. You can elect to participate in the program only during the enrollment period. However, new faculty hired at the beginning of the academic year or during the academic year have the same length of time to enroll in the Twelve Month Payment Option as they have to enroll in benefits (60 days). Since the number of deductions may be less than 18, contact Payroll & Tax Services at 352-392-1231 or firstname.lastname@example.org if you need assistance determining your deduction amount.
Can I opt out of the program mid-year?
Yes, participants who decide during the year that they wish to discontinue participation may cancel their enrollment by contacting Payroll & Tax Services in writing or by email email@example.com . Those who leave the program for any reason may not re-enroll until the next academic year’s enrollment period. The participant’s account will be reconciled and paid in full in the first available pay period.
What happens if I leave UF at or before the end of the academic year?
Participants who terminate employment at or before the end of the academic year will be paid in full for the amount of deductions that had been collected to that point. Payment will be made in the next regular paycheck. It is the responsibility of the participant to contact Payroll & Tax Services in writing or by email firstname.lastname@example.org upon termination.
What if I am currently enrolled? Will my enrollment continue year after year?
Yes, your enrollment will continue until you notify the Payroll & Tax Services in writing or by email email@example.com that you wish to discontinue your participation. No action on your part will be necessary to renew your enrollment. However, we recommend that you use the Twelve Month Calculator during each enrollment period to be sure your deduction amounts are still correct. If there are any changes, complete and electronically submit the Twelve-Month Payment Option Form. The form must be submitted by August 15 for the academic year.
Will all of my paychecks throughout the year have the same net pay?
Most of your paychecks will average the same net pay; however, the first paycheck of the fall semester and the last paycheck of the spring semester will have no deduction so these paychecks will differ from paychecks issued during the rest of the academic year and the summer. Also, in months where there are three paychecks the third paycheck’s net pay will be different since there are limited benefit deductions.
What is “Double Deduction” and when does it occur?
Every spring, nine-month faculty members are required to prepay their summer, monthly premiums for any benefits provided by the State of Florida. These double premiums are deducted from the employee’s bi-weekly paychecks during the months of February, March, April, and the first paycheck of May.
Can I have my benefit deductions taken from my summer payments rather than double-deducted during the spring?
No, double deductions will continue to be withheld from the paychecks during February through the first paycheck in May.
How will this program impact me if I have a summer appointment?
This program is independent of any summer appointments you may have. Summer appointments will not impact the distributions that you will receive from this program during the summer months; those distributions will be made as normal and will be added to the net pay you receive from any summer appointments. The distributions will not be taxed, as they are the return of previous after-tax deductions. Wages earned on summer appointments will be taxed as usual.
Will I earn interest on the deferred money?
No, participants will not be able to collect interest on the funds withheld through this program. This program is designed as a savings method to help manage cash flow for nine-month faculty over the summer months. However, many financial institutions provide interest-bearing solution to employees.
Is this the only way for a nine-month faculty member to save money for the summer months?
No, you have the ability to update your direct deposit record and have your paychecks split among as many as three bank or credit union accounts. You can choose to have an amount direct deposited into an account you could use for setting aside funds to be used in the summer. This option would also allow you to adjust as needed the amounts you set aside each paycheck, an option which is not available in the Twelve Month Payment Option. In addition, many financial institutions provide interest-bearing accounts.
Will the six equal installments that I receive during the summer months be taxed when paid to me?
No. The deductions during the fall and spring semesters will be withheld after taxes (from net pay), so the summer payments will have no taxes withheld.
Will the Twelve-Month Payment Option summer payments be direct deposited into an employee’s bank account(s)?
Yes, the payments will post to the same bank account(s) established by the employee for the regular bi-weekly paychecks.
What happens to the funds in the event of death of the employee?
The total balance withheld for the employee will be distributed to the beneficiary(s) once all required documents have been received by the UFHR Benefits Office.
What if an employee has questions related to the Twelve-Month Payment Option?
All questions related to the Twelve Month Payment Option should be directed to Payroll & Tax Services at 352-392-1231 or firstname.lastname@example.org. If you wish to mail Payroll & Tax Services, the address is P. O. Box 113201, Gainesville, Florida 32611.