FAQs - ERE

What is an ERE rate?

What types of Vacation pay are included in the ERE pool?

  • Vacation and Comp Time payouts that occur due to termination or position changes will be included in the ERE rate.

How is Vacation Termination paid? Do I still need to budget for it?

  • As part of the ERE rate the university is collecting money each pay period to cover for the vacation termination payment. Budgeting at the local level will no longer be necessary. Please remember to comply with all applicable University policies in regards to employment and benefit offerings.

Can I see if a terminated employee has been paid their vacation payout?

  • Yes, Vacation payouts are now paid from the ERE pools and can be viewed in UAccess Analytics.  To view this information:
  1. Click Dashboards.
  2. Select General – Labor Ledger.
  3. Click on the Payroll Expenditure tab.
  4. Remove the Organization Code.
  5. Enter the Employee ID and click Apply to view all compensation for the employee. 
     

Does Vacation Termination payout change my Position Distribution funding for future positions?

  • Yes. Vacation payouts are now paid out of the Payroll Suspense account (9200000) which became part of the UA’s ERE rates (Termination Leave). When an employee is termed and receives their vacation payout, the Payroll Suspense account will be added to their position distribution for the payout. When the position is vacated, the Position Distribution funding will need to be deleted. If the funding is not deleted, future employees in this position will be funded from the wrong account.  To delete the funding, click the red “delete” icon to the right of the accounting line. 

Position Distribution

Why did we move from ERE Rate Tuition Remission to Direct Bill Tuition Remission?

  • The Tuition Benefits Committee in February 2013 provided a recommendation that tuition remission be a direct charge and not applied as an ERE component. They also felt direct charge would balance both University financial needs and the financial constraints of individual programs to strengthen graduate education at UA. This change is made with the understanding that:
    • Graduate tuition benefit is essential to recruit and retain the best graduate students
    • Tuition benefit is fairly distributed
    • RCM philosophy of budgeting, the funding should be transparent
    • Faculty and Graduate Students will know the full costs of tuition benefits
    • The amount of subsidy from the institution will be known
  • The ERE Executive Finance Committee evaluated this recommendation and determined a method for enacting the change.
  • For additional questions and information regarding Tuition Remission, please refer to the UA Graduate College Graduate Assistant/Associate Manual.
  • Direct Bill Remission began at the start of FY 2016.

How many pay periods will the Direct Tuition expense be spread over?

  • The University has opted to spread the expense over 6 pay periods. To reduce the number of adjustments, the expense will begin after the semester starts until the semester end. As the University does not presently provide Graduate Tuition Remission for the summer months, expenses will only be reflected in the Fall and Spring semesters. A calendar depicting the pay dates by semester can be found here.

I did an SET for a Graduate Assistant and it moved too much from object code 2130 (Graduate Tuition Benefit), leaving a negative balance.  Why?

  • Graduate Tuition Benefit (GTB) is not calculated on every pay period.  In December 2015 and May 2016 - in the first pay period of these months - the system will calculate GTB. The system calculates the amount of salary to move off, not how much GTB is available.  If an SET is created for GTB after the 2nd pay period of December 2015 and May 2016, the system will calculate on total salary, not the one pay period for which the GTB was originally calculated.  When you do an SET for either of these two months, you must move the funds before the second pay; otherwise it will calculate GTB for the entire salary and you will need to contact Payroll Accounting to have the excess GTB reversed out.

When will encumbrances be loaded for Graduate Tuition Benefit?

  • Encumbrances will be loaded on the same pay period that the first Graduate Tuition Benefit hits the system. For example, the first GTB for Spring 2016 will be reflected on March 4, 2016 and encumbrances will be loaded the same day.  See Payroll Calendar.

How does the Graduate Tuition Benefit show on an Assistant’s paystub?

  • See image below. (The highlighted lines have been added. All other information will remain the same.)

Example of GA paystub

What happens if my budgeted grant funding and actual costs do not align?

  • The following scenarios have been created to address this issue:

Scenario 1: Awarded and/or budgeted prior to 7/1/2015

If your grant/contact was awarded or budgeted prior to 7/1/2015 and was budgeted under the ERE rates, you will need to pay the difference from another budgeted category or a departmental account. Under RCM the tuition received from the GTR will be awarded tax free to state and local funds only. All other restricted funds (sponsored, auxiliary, agency, etc.) will be taxed.The following are two examples:

Budget does not cover cost of tuition

Budgeted:  
Salary$20,000 
Grad Asst ERE 13.3%$2,660 
Tuition Remission 50%$10,000 
Actuals:  
Direct Bill of TR$11,000 
Variance($1,000)- This portion will need to be paid by grant from another category or from another departmental account

Cost of tuition was over budgeted

Budgeted:  
Salary$30,000 
Grad Asst ERE 13.3%$3,990 
Tuition Remission 50%$15,000 
Actuals:  
Direct Bill of TR$11,000 
Variance$4,000- This portion will need to be re-budgeted in grant.

Scenario 2: New budget as of 7/1/2015

If your grant/contact is in the process of being awarded or budgeted after 7/1/2015 it would no longer fall under the ERE rates, the actual tuition costs can be budgeted. The following is an example:

New FY2016 budget process

Budgeted:  
Salary$30,000 
Grad Asst ERE 13.3%$3,990 
Tuition Remission 50%$11,000 
Actuals:  
Direct Bill of TR$11,000 
Variance$0- No variance for tuition remission.