Johnson School Administrative Service Center: Bonus Payments

Administrative Service Center
235 Sage Hall
Phone : 607- 255-7541
Fax : 607-255-2823

Bonus Payments/Nonacademic

Definition

Bonuses are special one-time, lump-sum payments made to staff members. The information below defines the payments in more detail.

Types of Bonuses:

Performance Bonus: A performance bonus may be used to reward a staff member's special efforts and high performance on projects or special assignments. This type of bonus payment is used at the discretion of management to recognize high performance, which results in significant and documented cost reductions, savings or income to the School. It may be used to recognize unexpected, self-starting, extraordinary individual accomplishments in support of organizational performance effectiveness occurring outside the boundaries of the expected performance of the staff member's job.

Incentive Bonus: An incentive bonus is reserved for bonuses established as part of a formal, documented and approved Incentive Bonus Plan. Payments of these bonuses are based on performance measured against established goals.

The department recommending the bonus is responsible for ensuring and verifying that any staff member recommended for a Performance or Incentive Bonus has a current Performance Evaluation on file with the School's Administrative Service Center. The Performance Evaluation must document the performance and contributions that warrant the bonus.

Additional Bonus Payments Include:

Hiring Incentives: Used far less frequently, sign-on bonuses may be appropriate in special hiring situations that are highly competitive or market-driven. Payment of these bonuses requires consultation and agreement by the Hiring Supervisor, Management Committee to whom the Hiring Supervisor reports and Human Resources. Payment is usually made in one-lump sum at the time of hire.

Lump-Sum Payments: Lump-sum payments are one-time payments for the retroactive portion of a salary increase resulting from either a position reclassification, salary equity adjustment or a vacation buyout when the employee voluntarily resigns.

Extra Pay Outside Primary Appointment: Nonexempt employees may accept and be compensated for work that clearly is distinct and segragable from his/her primary duties in consultation with the Human Resources Office, Supervisor, and Director of Administrative Services. The criteria includes:

The employee attests to the fact that the work will not be done during the employee's regular business day;
The employee will not take vacation and/or sick leave (from his/her current position for which s/he is already being paid) to perform the service(s);
The work and/or workload does not interfere with the employee's performance in his/her primary role; and
S/he has the advanced approval of his/her supervisor

Acting Rates: Acting rates represent extra compensation for a staff member who has temporarily assumed major responsibility for and performance of a higher level job. Such assumed responsibility is usually in addition to the employee's primary job responsibilities. Acting rates must have specified beginning and end dates, which should not extend beyond six months.

Exceptional performance demonstrated by a staff member in the completion of regularly assigned job responsibilities is normally recognized through the annual Pay Improvement Program.

For additional information that might help one better understand what constitutes outstanding performance or to learn when bonuses are appropriate, please see the Reward and Recognition Program.

Employees approved to receive a bonus for outstanding performance or other approved recognition are paid via a University Personnel Action Form (UPAF) through the University Payroll System. To accomplish this, provide the Administrative Service Center with the information requested on the Extra Compensation/Bonus or Fee Payments Form. The Form must include a detailed explanation of the nature and purpose of the payment. Bonuses should not be discussed with the intended recipient(s) until all approvals have been obtained.

PLEASE NOTE for planning purposes: It can take up to three weeks before payment is received. This type of payment can only be processed during the regular Payroll cycle. Two weeks are required by Records Administration and Payroll from the date of processing to the date of payment, not to mention that the Administrative Service Center needs some time to complete the actual paperwork to be forwarded to Records and Payroll.

You may complete the form and send it to the Administrative Service Center. Bonuses are subject to taxes and Employee Benefits and will be issued in the employee's regular paycheck.

If you have any questions, please do not hesitate to contact the Administrative Service Center or call X5-5037 for assistance.