# Budget Department

### Salary/Wage Budgeting Instructions

1. Fringe Benefit Budgeting for Locally Funded Cost Centers
For Ledgers 2, 3, 4, 5 - (Benefits eligible–28%, Non–benefits eligible–10%)

2. Split Budgets
Salary amounts for split–budget employees must be consistent with the FTE indicated on each respective budget.

Annual Salary = \$20,000

Cost Center: Administration and Finance - 25%
Speed Type 10555 Fund 1061 Dept ID V0010 Program F0240 Proj/Grant NA
If FTE is 25%, then salary = \$ 5,000 (\$20,000 X 0.25)

Cost Center: Telecommunications Service - 75%
Speed Type 10708 Fund 1061 Dept ID V0016 Program F0251 Proj/Grant NA
If FTE is 75%, then salary = \$15,000 (\$20,000 X 0.75)

Employees will be paid at the same hourly rate of pay from each cost center.

3. Hourly–Paid Employees
Non–exempt, hourly employees will be budgeted for a total of 2088 hours (1.00 F.T.E.)

 salary increase = hourly rate x percent (%) increase and ROUND UP to the next higher cent for any fraction above .00 new hourly rate = hourly rate + salary increase new annual salary = new hourly rate x 2088 hours x FTE and ROUND UP to the next whole higher dollar

For example, if a half–time (0.50 FTE) employee currently makes \$8.02 per hour and will receive a 3% increase, the calculation should be performed as follows:

 salary increase = \$8.02 x .03 = \$.2406 & ROUNDED UP = \$ .25 new hourly rate = \$8.02 + \$ .25 = \$8.27 new annual salary = \$8.27 x 2088 hours x .50FTE = \$8,633.88 and ROUNDED UP = \$8,634

A shorter method of calculation is to multiply the hourly rate by 1.03. It is still necessary to make the intermediate rounding step, however. For example:

 new hourly rate = \$8.02 x 1.03 = \$8.2606 & ROUNDED UP = \$8.27
4. Types of Appointments and Benefits Eligibility
The employment status of any individual is determined by the job assigned, regardless of the source of funding. Below are the types of employment:

1. Regular Employment
An assignment of at least 0.50 FTE (Full–Time Equivalency) for a period of at least four and one–half months is considered regular employment. An individual in regular employment is eligible to participate in the fringe benefits programs. The accrual of some benefits, such as paid leave and paid holidays, is proportionate to the FTE established for the position.

2. Part–time Employment
An assignment for less than 0.50 FTE (less than 20 hours per week) for a specified period equal to or exceeding four and one–half months is considered part–time, regardless of the length of employment. An individual employed on a part–time basis is not eligible for paid leave or participation in benefits programs and is not granted paid holidays.

3. Temporary Employment
Employment in a position for which student status is not required for a specified period not to exceed four and one–half months is temporary employment. An individual employed in a temporary position is not eligible to participate in benefits programs and is not eligible for paid leave or paid holidays.

4. Student Employment (Non–College Work Study; Federally-funded College Work Study; Texas-funded College Work Study).
Employment in a position for which the prospective employee is currently a student at either The Victoria College or University of Houston–Victoria, regardless of the source of funds, is considered student employment. An individual employed in a student position is not eligible for participation in benefits programs and is not granted paid holidays or paid leave.

5. New Staff Positions
The procedures for new staff position requests are as follows:

1. Department Head obtains approval for the new position request from cabinet-level supervisor.
2. A Position Request/Adjustment Form is completed and signed for presentation at Budget Hearing.
3. If a new position is approved by the Budget Committee, submit a Job Analysis Questionnaire Form (JAQ) to Human Resources office.

6. Overtime
A non-exempt employee who is subject to overtime provisions of the Fair Labor Standards

Act is entitled to compensation for hours worked in excess of 40 hours in a work week. The employee must have received prior approval for hours worked in excess of 40 hours. The supervisor should make every attempt to grant compensatory time off. However, when circumstances in which granting compensatory time off are impractical, the employee is entitled to be paid for the overtime at the rate equal to 1-1/2 times the employee’s regular rate of pay.

Units which anticipate paying overtime or additional regular time to employees who have been budgeted to be less than full time, e.g. 0.50 FTE, 0.75 FTE, must include overtime and/or additional regular hours requested on the Salary and Wage Proposal form.

7. Funding for merit is not yet known. Therefore, merit instructions will not be included in the budget hearings. Separate instructions detailing merit compensation will be distributed at a later date.

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