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PAR System: Example of Percent of Pay Calculation With Differing Base Salaries
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Summary: The following example explains how the Personnel Activity Reporting (PAR) system calculates percent of pay when a differing base salary distorts the percentage, and what you need to do to correct it. |
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PAR system — example of percent of pay calculation with differing base salaries: During the spring 2001 period, an employee was paid for 50% of her time on a federal fund (index DEF0200) and 50% on a non-federal fund (index WBC1234). Due to restrictions on the federal fund, her base pay on index DEF0200 was less than her base salary on index WBC1234.
The PAR system calculates percentages based on gross salary and does not adjust for different base salaries. When certifying effort, the department needs to recognize this and adjust the effort reporting accordingly. The following table shows how the PAR system calculates percent of pay:
|
Index |
Fund |
DOS code |
Pay month |
Time base |
Rate |
Gross salary |
| Sponsored projects: |
| DEF0200 |
32200A |
REG |
4/01 |
.50 |
5,000 |
2,500 |
| |
|
REG |
5/01 |
.50 |
5,000 |
2,500 |
| |
|
REG |
6/01 |
.50 |
5,000 |
2,500 |
| Total paid on DEF0200: |
7,500 |
| All other: |
| WBC1234 |
19900A |
REG |
4/01 |
.50 |
8,000 |
4,000 |
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REG |
5/01 |
.50 |
8,000 |
4,000 |
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REG |
6/01 |
.50 |
8,000 |
4,000 |
| Total paid on WBC1234: |
12,000 |
| Total paid spring 2001: |
19,500 |
Total pay for this period is $19,500.
The percent of pay that will be reported on the PAR is 38% for sponsored projects (7,500 divided by 19,500).
The percent of pay that will be reported on the PAR is 62% for all other (12,000 divided by 19,500).
Because of the percentage distortion caused by differing base salaries, you need to overwrite the percent of pay as 50% for sponsored projects and 50% for all other on the PAR form.
If the employee worked on the federal fund 50% of the time and on the non-federal fund 50% of the time, the department should certify the percent of effort as 50% and 50% respectively, not 38% and 62%.
Questions? Contact OPAFS.
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