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To: Business Managers

From: Dennis Press, University Controller

Date: April 25, 2012

The purpose of this message is to provide advance notice regarding a rate change effective July 1, 2012. The Composite Benefits and Severance Pay rates are calculated based on salaries paid from Non-State Funds and provide funding to pay expenses for unemployment compensation, workers compensation, short-term disability pay, health insurance premiums while on professional leave, and severance wages.

For fiscal year 2012-13, the Composite Benefits rate will remain unchanged at 0.35%, and the Severance Pay rate will increase from 0.70% to 0.75%. The rate change is effective with the July 2012 payrolls. The Composite Benefits rate is applied to both EPA and SPA salaries, and the Severance Pay rate is applied to SPA salaries. The rates are summarized as follows:

Severance Pay

Expense Object Code: 1251
Salary Base: SPA Salaries paid from Non-State Funds [object codes 121x] Rate Change: Increase from 0.70% to 0.75%
Effective Date: 07/01/2012

Composite Benefits Fund

Expense Object Code: 1892
Salary Base: EPA and SPA Salaries paid from Non-State Fund [object codes 11xx, 12xx, 13xx, 14xx] Rate Change: No change, rate remains at 0.35%
Effective Date: 07/01/2012

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