Contract Pay

Use the resources and tips below to complete the following contract-related tasks

  • Setting up a new contract on an active job record (reappointment)
  • Reviewing contract payment details
  • Changing pay rates 
Step-by-step Guides
Tips and Tricks

 Working with contracts

Pay Rate Change

  • To access updated contract types, an effective date must be entered first 
  • The effective date must be equal to payment begin date
  • A school schedule is entered only when setting up 9-pay-9, 9-pay-10, and 9-pay-12 contracts

Related Guides and Resources

Step-by-step:  Hiring and Rehiring

Step-by-step: Approving transactions

Quick Reference Guide: View completed ePAR transactions


Contract Information and Policies

Contracts at a Glance

Contract Setup: 

In general, academic-year appointments are made on a contract basis for the academic year (September through May). Faculty may select a nine-month (9/9) or (9/12) month payment option. If faculty do not indicate a preference, their pay defaults to the 9/9 plan. 

Choosing a plan:

A faculty member must choose their payment plan by the the start of the academic year (September through May). The election is irrevocable once the academic year has begun, and the contract remains in effect for the entire academic year. You may only change contracts at the beginning of each new academic year.

To comply with IRS regulations regarding deferred compensation, the university cannot allow any changes between 9/9 and 9/12 contract types once the contract period has begun.

Pay Dates:

Faculty are paid on the last working day of each month. (Exception: if the 9/12 option is selected, June salary will be paid on the first working day of July, per state of Colorado fiscal rule).

Pay Disbursements

Paid over 9 months (9/9 schedule)

The faculty member's monthly pay equals your contracted academic-year salary, divided by nine. They are paid one-ninth of their contract each month from September through May, and the contract will be paid in full at the end of May. Faculty will receive no pay from this contract during June, July and August.

Paid over 12 months (9/12 schedule selected before September)

If a faculty member selects the 12-month pay option starting in September, they will receive 12 equal payments totaling the contracted academic-year salary (paid September through August).

Tax Considerations

Tax Considerations

The IRS adds any summer payments to payments made across the 9/12 plan, meaning faculty may be taxed at a higher rate.

Contract Amount Adjustments

Contract Amount and Pay Adjustments

Contracts for academic-year faculty are generally updated in August. Any midyear changes to contract compensation will affect remaining payments. Any change made to the full contract amount during the contract period will change future payments so the total contract amount is paid correctly.

Vacation and Sick Leave

Both contract types (9/9 or 9/12 pay options) do not accrue vacation leave. However, faculty may be eligible for sick leave under certain circumstances. See the  Faculty Handbook for guidelines.

Multiple Components of Pay

By federal law, the university must document the effort expended by employees paid by grants and contracts (  OMB Circular A-21 Cost Principles for Educational Institutions).

The Personnel Effort Report System (PERS) is an after-the-fact certification system that accurately documents these employees' effort on projects for sponsoring agencies. The Personnel Effort Report (PER) certifies the level of effort expended on sponsored project(s) during a particular timeframe. This provides sponsoring agencies reasonable assurance that the labor costs charged to a sponsored project reflect the actual effort expended on the project.

The PER can be generated on a quarterly, semester or monthly basis, based upon campus needs. Reports are generated for any employee paid on any sponsored project.

The employing campus sponsored programs office distributes the PER Form to the employing department for confirmation of accuracy by the employee and/or the designated responsible official. Once the form is certified as correct, and any needed changes have been made, the employing department notifies the campus sponsored program office. The PER system is then used to track the receipt of the forms, so any missing forms can be identified and located.

For additional information, contact the specific campus sponsored program offices and the following websites:

Support faculty with correct contracts.

New faculty contracts

For new faculty contracts, you'll enter a hire transaction and a pay rate change transaction. 

Step-by-step: Working with contracts 

Step-by-step: Pay Rate Change

Returning faculty member contracts

To prepare for contract renewals and contract amount changes, we're asking you to:

  • Update employees' statuses (active or inactive)
  • Validate report of employees whose contracts will be renewed for Fall 2017
  • Update a provided template with contract amount changes
  • Provide annual election changes to your campus HR office (9/9 to 9/12 or vice versa)

These deadlines are subject to change. 

Campus-specific questions

If you have campus-specific questions, please contact: