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10 Month: 7/5th Reminder

This is a kind reminder about the increase in benefit deductions during the spring semester for 10 month contracts. As referenced in the BOR Business Practice Manual 5.1.4, 10 month contract employees are considered full-time employees, and they receive benefits for 12 months, based upon the assumption that their contract will be renewed for the next academic year. Payroll deductions for fringe benefits must aggregate 12 months of deductions within a 10 month salary delivery period. Normally, a contract begins in August and ends in May, with benefits continuing during June and July if the contract is renewed.

If a 10 month contract employee terminates employment at the end of the academic year (May), benefit deductions for the months of June and July will be refunded to the employee. Benefit coverage would end at the end of May. Health and dental benefits would then be available under COBRA. Only when their contract is scheduled for renewal for the next academic year is the employee allowed to continue benefits during the months of June and July.

 

Alrick Banks
HR Compensation & Benefits Specialist
4784455838
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