Signing Bonuses are a part of the state’s discretionary pay differential guideline for state classified employees only. Departments should check with their campus human resources departments before using any pay differentials, since each campus may have specific policies on their use.
For general reference about pay differentials for state classified employees, see the State of Colorado’s Technical Assistance – Non-Base Building Discretionary Pay Differentials Guide.
Once campus department requests are approved by the appropriate human resources department, these types of payments may be made to classified employees.
Bonus payments are processed through the Human Resources Management System (HRMS) in Time Collection in a One-Time Payment batch. Before entering the payment, an Additional Pay Form must be completed and routed for off-line approval, based upon individual campus requirements.
The department initiating the bonus completes the Additional Pay form (routing instructions are included on the form), using the earnings code of BON. Once approval has been received, the employing department enters the bonus amount, earn code and SpeedType via Time Collection by creating a One-Time Payment batch and entering the employee’s bonus.
The bonus payment will be automatically included on the next available regular payday for the employee. Bonus payments are taxed at the supplemental rate of 25 percent for federal withholding and 4.63 percent for state withholding. Medicare tax amounts are also withheld, if applicable. Bonuses are not subject to PERA or included in overtime calculations.
Note: Departments have the ability in Time Collection to override the SpeedTypes that are recorded on the position’s funding distribution page. Be careful to use appropriate SpeedType when processing a signing bonus payment.