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Understand how job changes impact benefits and HCM encumbrances

Job changes have downstream effects on payroll and the general ledger.

The University of Colorado employs a wide array of people in a multitude of positions — temporary, permanent, full-time, part-time, contract-based — and a department’s needs or an employee’s circumstances may call for changes to their job data that can impact their payroll and benefits.

Job Data and benefit eligibility

Position data posts to job data and must remain in sync with job data for accurate pay, benefits and funding. Generally, benefit eligibility is based on a total of at least 20 standard hours from one or more positions that include benefit-eligible job codes in regular status. Temporary positions are generally not eligible for benefits (with a few exceptions). All positions are eligible for state sick leave if not already eligible for other leave programs.

Earnings and Benefits

Earnings and benefits post using position funding or CU Time and Additional Pay override SpeedTypes according to campus rules reflected in the department budget table and additional pay rules. 

Benefit expenses follow earnings at UCD/AMC, and even if there are no earnings, benefits will continue to post for active benefit-eligible employees. UCB and UCCS SpeedTypes post a fixed fringe rate to earnings SpeedTypes determined by payroll account codes. If there are no earnings, then no corresponding fringe cost can post.

Encumbrances

HCM calculates encumbrances for anticipated earnings and benefits over a period of time, like the fiscal year. Grant funding may have different encumbrance periods based on the specific grant budget period and funding distribution data. HCM encumbrances for benefits are calculated using the actuals distribution at UCD and AMC and fringe costs at UCB and UCCS. For UCB and UCCS SpeedTypes, if there are no earnings, then no corresponding fringe encumbrances can post.

Appointment End Date

An appointment end date in Job Data reflects the anticipated end of an employment relationship. It could reflect a scheduled termination date (i.e., a nine-month temporary position), or that an employment relationship will change (fall term teaching ends and a new letter of offer will apply to the spring term).

  • Appointment end dates do not stop earnings. Earnings continue to post.
  • Appointment end dates stop encumbrances for earnings (i.e., encumber to appointment end date only).
  • Benefits continue to post (so long as the employee remains benefit-eligible) according to the Department Budget Table (DBT) rules.
  • For UCB & UCCS: HCM encumbrances for fringe rates continue to post based on earnings that post to earnings SpeedTypes.

An appointment end date is not used in the auto-term process — instead use Expected Job End Date.

Short Work Break

During a period between appointments, Short Work Break can be used to continue an employee relationship without pay.

  • Short work breaks do stop earnings.
  • Benefits continue to post (so long as the employee remains benefit-eligible) according to the Department Budget Table (DBT) rules.
  • For UCB & UCCS: HCM fringe encumbrances do not continue to post, since there are zero earnings that post to earnings SpeedTypes.

Compensation — Zero Pay

Sometimes departments will change job data to reflect zero compensation. It might be to designate a titled but unpaid position for the employee, or to establish an honorary position instead of creating a POI relationship.

  • Zero compensation creates no earnings.
  • Benefits continue to post (so long as the employee remains benefit-eligible) according to the Department Budget Table (DBT) rules.
  • For UCB & UCCS: HCM fringe encumbrances do not continue to post, since there are zero earnings that post to earnings SpeedTypes.

Leave of Absence — Paid

When using the paid Leave of Absence designation for a position, the employee’s salary is offset by paid leave which may reflect Family Medical Leave (FAMLI) and paid parental leave.

  • Since the employee is in paid status, earnings continue to post.
  • Benefits continue to post (so long as the employee remains benefit-eligible) according to the Department Budget Table (DBT) rules.
  • For UCB & UCCS: HCM fringe encumbrances continue to post based on earnings that post to earnings SpeedTypes.

Leave of Absence — Unpaid

When using the unpaid Leave of Absence designation for a position, the employee’s salary is not offset by paid leave. This feature stops pay.

  • Since the employee is in an unpaid status, earnings do not post.
  • Benefits continue to post (so long as the employee remains benefit-eligible) according to the DBT.  
  • For UCB & UCCS: HCM fringe encumbrances do not continue to post, since there are zero earnings that post to earnings SpeedTypes.

Need extra help?

Learn more about job and position changes on the HCM website. You can also learn more about important HRGL topics such as Department Budget Tables and Payroll Expense Transfers (PETs) on the HCM website.

As always, you can email hcm_community@cu.edu or System.HRGL.Team@cu.edu for additional help.

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