Deferred Payment Plan

The Deferred Pay Option Plan allows 9- and 10-month employees to spread their academic-year salary over a full 12 months, allowing for a uniform or fixed bi-weekly payment amount throughout the year. Receiving a fixed bi-weekly salary throughout the year eliminates the fluctuations in salary that may occur over the summer months.

The deferred pay process takes a portion of each 9- or 10-month bi-weekly earning and sets it aside for payment over the summer months. A nice feature to this plan is that your federal withholding taxes and benefit deductions are also spread out over the 12-month period. An exception to this is the ORP contribution. Those contributions cannot be spread over the 12-month period. Therefore, the payroll system will calculate ORP contributions based on the 9- or 10 month bi-weekly rate.

Benefits of Enrolling in the Program:

Allows a year-round income.
Spreads the federal tax liability over a longer period.
Frees you from having to save money to cover living expenses during the “off contract” period.
Allows for standardized deduction coverage over the entire 12-month period (eliminates the double deductions).

Participating in the Deferred Pay Option Plan for your primary employment will not prevent you from taking on additional assignments at the University or receiving pay for summer assignments. Overload and summer compensation is not included in the deferred pay process and will be paid out over the course of the applicable term in addition to your fixed bi-weekly payment amount.

Determine if Enrolling is Right for You:

Use the calculator below to compare your current bi-weekly salary to the proposed bi-weekly salary under the deferred pay program. Simply enter your annual 9- or 10-month salary, and the calculator will display your current and new gross bi-weekly amount for each pay period under the Deferred Pay Option Plan.

Deferred Pay Option – Bi-Weekly Amount Calculator

9 or 10 Month Annual Salary	9 Month Bi-Weekly Amount	10 Month Bi-Weekly Amount	Deferred Pay Bi-Weekly Amount
	$ 0.00	$ 0.00	$ 0.00

Enrollment or termination in this program is only available once a year during the open enrollment period (typically April to June). Selections will take effect in the new academic year beginning the following Fall term. Please note, visiting faculty are ineligible for the Deferred Pay Option Plan.

Please Direct Questions to the Following Areas:

Benefits/double deductions for insurance: benefits@bonessucks.com

Distribution process/final installment/first installment: fau_payroll@bonessucks.com