9-Month Annual Year (AY) Contract Scenarios
Summer Scenario #1
Dr. Lee has an AY faculty contract of $90,000 after all deductions and tax withholdings. She has elected to receive it over 9 months, so her semi-monthly pay is $5000 ($90,000/18 pay periods). She obtained a Department of Energy grant that will pay her salary for 12 weeks in the summer at a maximum of 95% per university guidelines. Her paychecks for May, June, July, and August will be as follows:
| Payroll Period | Paycheck amount | Source |
| April 1 – April 15 | $5,000 | AY Base Salary |
| April 16 – April 30 | $5,000 | AY Base Salary |
| May 1 – May 15 | $5,000 | AY Base Salary |
| May 16 – May 31 | $4,750 | Grant |
| June 1 – June 15 | $4,750 | Grant |
| June 16 – June 30 | $4,750 | Grant |
| July 1 – July 15 | $4,750 | Grant |
| July 16 – July 31 | $4,750 | Grant |
| August 1 – August 15 | $4,750 | Grant |
| August 16 – August 31 | $5,000 | AY Base Salary |
Summer Scenario #2a and #2b
Dr. Fitzpatrick has an AY faculty contract of $63,000 after all deductions and tax withholdings. He has elected to receive his salary over 9 months, so his semimonthly salary is $3,500 ($63,000/18 pay periods). This summer, he has a summer contract to teach one course in Summer 1 and one course in Summer 2. The classes have at least the minimum enrollment, and the dean has set the compensation such that his take-home after deductions and taxes will be $6,300 in June and again in July. His paychecks for April, May, June, July, and August will be as follows:
| Payroll Period | Paycheck amount | Source |
| April 1 – April 15 | $3,500 | AY Base Salary |
| April 16 – April 30 | $3,500 | AY Base Salary |
| May 1 – May 15 | $3,500 | AY Base Salary |
| May 16 – May 31 | 0.00 | -- |
| June 1 – June 15 | $3,150 | Teaching |
| June 16 – June 30 | $3,150 | Teaching |
| July 1 – July 15 | $3,150 | Teaching |
| July 16 – July 31 | $3,150 | Teaching |
| August 1 – August 15 | 0.00 | -- |
| August 16 – August 31 | $3,500 | AY Base Salary |
Here is an alternative scenario in which Dr. Fitzpatrick had already elected to receive the same AY salary over 12 months and therefore receives deferred salary in the summer. His semimonthly salary is $2,625 ($63,000/24 pay periods). He is teaching one class each in Summer 1 and 2, and the compensation is such that his take-home after deductions and taxes will be $6,300 in June and again in July. His paychecks for April, May, June, July, and August will be as follows:
| Payroll Period | Paycheck amount | Source |
| April 1 – April 15 | $2,625 | AY Base Salary |
| April 16 – April 30 | $2,625 | AY Base Salary |
| May 1 – May 15 | $2,625 | AY Base Salary |
| May 16 – May 31 | $2,625 | AY Base Salary |
| June 1 – June 15 | $5,775 | Teaching + AY Base Salary |
| June 16 – June 30 | $5,775 | Teaching + AY Base Salary |
| July 1 – July 15 | $5,775 | Teaching + AY Base Salary |
| July 16 – July 31 | $5,775 | Teaching + AY Base Salary |
| August 1 – August 15 | $2,625 | AY Base Salary |
| August 16 – August 31 | $2,625* | AY Base Salary |
Summer Scenario #3
Dr. Martinez has an AY faculty contract of $72,000 after all deductions and tax withholdings. He has elected to receive his salary over 12 months and, therefore, receives deferred salary in the summer. His semimonthly salary is $3,000 ($72,000/24 pay periods). This year, he has been granted $6,000 in research funding for the whole summer from his dean. His paychecks for April, May, June, July, and August will be as follows:
| Payroll Period | Paycheck amount | Source |
| April 16 – April 30 | $3,000 | AY Base Salary |
| May 1 – May 15 | $3,000 | AY Base Salary |
| May 16 – May 31 | $4,000 | Research + AY Base Salary |
| June 1 – June 15 | $4,000 | Research + AY Base Salary |
| June 16 – June 30 | $4,000 | Research + AY Base Salary |
| July 1 – July 15 | $4,000 | Research + AY Base Salary |
| July 16 – July 31 | $4,000 | Research + AY Base Salary |
| August 1 – August 15 | $4,000 | Research + AY Base Salary |
| August 16 – August 31 | $3,000 | AY Base Salary |