PAY SCHEDULE FOR ACADEMIC YEAR FACULTY & STAFF
Academic Year (AY) faculty and academic staff receive 10 monthly checks instead of 12. Annual pay rates are not affected.
The 10 payments are distributed as follows:
- salary for the period 8/16-8/31 on August 31
- full month’s salary on the last day of each month for September through April
- salary for the period 5/1-5/15 on May 31
Why does MSU follow this pay schedule for AY employees? IRS regulations require taxing AY salaries when earned, even if not actually paid until later. Because a limited exception to the IRS requirement is not applicable to many MSU AY employees, payment of AY salaries over 12 months is not feasible. In any case, faculty and academic staff on AY appointments should be paid when they earn the pay, even though they are University employees for the full year. This schedule also simplifies grant accounting for AY faculty and academic staff who are paid on federal projects and is consistent with federal regulations and effort reporting.
Benefits coverage is not affected by this schedule. While the 10 payments requires adjustment in how some monthly deductions are handled, e.g., health plan premiums, retirement, parking, etc., AY faculty and academic staff are university employees for the entire year and benefits coverage remains in place for the full 12 months, July 1 through June 30. Health benefit deductions are taken out of 8 full monthly paychecks (September through April). Retirement, Flexible Spending Account and Health Savings Account deductions are taken out of all 10 paychecks (August through May, as appropriate).
This schedule may require a different personal budgeting strategy for some. The University has established a voluntary savings/distribution program with the MSU Federal Credit Union (MSUFCU) that enables those who wish to do so to set aside a portion of their salary from the ten pay periods for distribution during the summer months. Information regarding that program as well as answers to many other questions is included in the Academic Year (AY) Pay Schedule Frequently Asked Questions (FAQs) .
If, after reading through the FAQs, you have additional questions regarding the pay schedule, please contact the appropriate office via the contact information provided in the FAQs.