GSU Policy on Extra Compensation: Maximum Rates, Total Compensation, and Related Matters
Hourly Instructional Extra Compensation Rate
Average College Faculty Salary
1 + Fringe Benefit Rate
Instructional Extra Compensation Rate
Asst Professor and above
This rate applies to all Robinson College of Business faculty members who possess the rank of assistant professor and above.
For individuals who do not possess the faculty rank of assistant professor or above, the maximum instructional extra compensation rate per hour is computed as follows:
(Academic Year salary) X (1.2701) / 250
To convert a Fiscal Year salary to an Academic Year salary, divide the fiscal year salary by 1.3.
For example, a fiscal year employee who makes $40,000 per year would compute their hourly instructional extra compensation rate as follows:
($40,000 / 1.3) X (1.2701) / (250) = $156
Hourly Non-Instructional Extra Compensation Rate
Rates for extra compensation for services other than instruction should be negotiated with the individual having budgetary authority over the account being charged. However, this negotiated rate shall not exceed the maximum instructional rate computed above.
Maximum Annual Extra Compensation Allowance
The maximum annual extra compensation allowance is now computed on an individual basis as follows:
(Individualls AY Salary) X (i + Fringe Benefit Rate) X (.40)
For example, an individual whose Academic Year salary is $50,000 would compute their maximum annual allowance as follows:
($50,000) X (1.2701) X (.40) = $25,402
Any questions regarding extra compensation rates or maximum annual allowances should be directed to the Director of Grants and Contracts at extension 1-2313.
Georgia State University Extra Compensation: Policies On Maximum Rates, Total Compensation, And Related Matters
Section 803-1404 of The Policy Manual of the Board of Regents states that extra compensation may be paid when all four of the following conditions are met:
- The workload is carried in addition to a normal full load.
- No qualified person is available to carry the work as part of his normal load.
- The work produces sufficient income to be self-supporting.
- The additional duties must not be so heavy as to interfere with the performance of regular duties.
This policy pertains to the maximum rate to be paid to faculty or staff for participation in continuing education activities which meet the Board of Regents criteria. It may not be possible to pay the maximum rates and have the program meet the criterion of being self-supporting. In these cases, there are two alternatives: (1) offer the program at extra compensation rates below the maximums that are negotiated with the instructors to permit the program to be self-supporting, or (2) do not offer the program because it cannot be self-supporting at the maximum extra compensation rate.
The maximum rate to be paid, per instructional contact hour to the faculty member of a college is equal to the average AY contract salary for all full-time faculty of a college at the rank of assistant professor or higher divided by the number of contact hours associated with a teaching load of six courses per AY, which is approximately the average teaching load in the University before any type of course releases.
Average AY Contract Faculty Salary In-College
This average is computed including all full-time AY contract faculty in a college plus all FY contract faculty with conversion of their salaries to an AY basis by dividing the FY contract salary by 1.3. The average salary, as computed, will be multiplied by the current employer fringe benefit rate to reflect the total compensation. This resulting average salary will be used to compute the maximum extra compensation rate.
(“College” is used herein to include all GSU organizational units with employees holding faculty rank, including GSU library, Developmental Studies and the GSU Counseling Center.)
Number of instructional hours in normal teaching load
In accordance with Board of Regents policy, there are 2,500 minutes in a five-quarter hour course. Thus, there are 250 instructional hours in a six-course teaching load.
Maximum Rate for Employees without Faculty Rank
The maximum rate per instructional contact hour for all employees other than those of faculty rank is determined by dividing their AY equivalent salary (12-month salary including fringe benefits divided by 1.3) by 250.
Rate for Faculty Participating in Program of another College
A separate maximum rate applies to the faculty of each college; the maximum rate applicable to the faculty member of one college that participates in the program of another college is the higher of the two rates.
Payment for Curriculum Development
The rates stated above include preparation for courses that the instructor has taught previously or for which the materials have been previously developed by others.
When an individual is asked to develop a new course, the amount of extra compensation to be paid will be negotiated between the instructor and the director of the continuing education activity.
Payment For Program Management
For those programs that require the appointment of a director because of their length or complexity, the amount of extra compensation to be paid to a faculty member serving as a program director will be negotiated between the individual being asked to serve as program director and the individual having the authority to do so.
Payment for Other Than Instructional Programs
Extra compensation may be paid to faculty for services other than those associated with continuing education program, as long as the activity meets the four conditions for payment of extra compensation as stated in Section 803.1404 of The Policy Manual of the Board of Regents. The amount and rate of extra compensation to be paid for such purposes will not exceed the maximum rate per instructional contact hour.
Payment to Employees Without Faculty Rank For Program Support
Extra compensation may be paid to employees without faculty rank for providing various types of program support, when all four of the conditions required for payment of extra compensation under Board of Regents policy are met. The amount and rate of extra compensation to be paid for such purposes will not exceed the maximum rate per instructional contact hour.
Course Releases In Lieu Of Extra Compensation
Course Release During Academic Year Quarter
In lieu of receiving extra compensation, if agreed between the instructor, the program director and the College or other organization unit with budgetary responsibility, the number of instructional contact hours times the negotiated extra compensation rate can be accumulated during a fiscal year. When an amount equal to 10% of academic year contract salary has been accumulated, the individual may be granted a course release during the same fiscal year from program funds.
The funds will be amended in to the budget of the College or other organizational unit to provide for the teaching replacement necessary to provide the course release.
Similarly, in lieu of payment of extra compensation, a program may provide for summer quarter course releases, for which the program will be charged an amount equal to 10% of the faculty member’s AY contract salary (plus fringe benefits). This course release will be provided in lieu of teaching a number of instructional contact hours at a negotiated extra compensation rate which equals approximately 10% of the faculty member’s AY contract salary.
Maximum Annual Total Extra Compensation
The maximum amount of extra compensation that can be received by any employee (faculty or staff) in any fiscal year is equal to 40% of the individuals academic year salary including fringe benefits (or FY salary divided by 1.3 for those employed on 12-month basis).
An exception may be requested to this maximum if an individual is critical to the satisfactory performance and completion of a contract with a client where substitution is either not feasible nor desirable. However, over a multi-year period, it is expected that such an individual will not, on average, exceed the maximum average extra compensation limit.