GUIDELINES ON ACADEMIC YEAR STAFF PAID OVER 12 MONTHS
DIVISION OF ACADEMIC AFFAIRS
Effective June 4, 2008 


Staff employees on academic year salaries ordinarily must be paid as they earn their
salaries during the appointment period (22 pay periods). However, the university does
provide an option for academic year staff to have their academic salaries paid over a 12-
month period (26 pay periods). According to the IRS, “deferred compensation arises in
an arrangement under which compensation earned in one [tax] year is paid in a later
year.” In order to avoid the tax penalties usually associated with deferred compensation,
a staff member must formally elect to defer.

The staff member’s election must be documented and recorded by the institution. The
institution will establish the annual deadline date for the election decision. The election
will stay in place indefinitely until the staff member elects a change. Moreover, the
election cannot be changed after the academic year begins. A staff member who chooses
the 26-pay election and separates from the institution prior to receiving all salary earned
will be paid all earned but unpaid salary in a single lump sum within 30 days of
separation.