5.05: K-12 and ISD Teachers, and Other Employees Paid by Contract


Many employees, including teachers, work under and are paid by contract. The correct number of hours to be reported for contractual employees over the school year (including all pay periods from the first pay in August or September to the last pay period worked in May or June – usually 21 or 22 pay periods) is the number of contract days times the specified number of contract hours per day.

Category Full-Time Part-Time

Reportable hours = (contract hours per year) ÷ (pay periods per year)
where contract hours per year = (contract hours per day) × (contract days per year)
 

Contract 
Employee

(contract hrs per year) ÷ (pay periods per year)
where contract hrs per year = (contract hrs per day) × (contract days per year)

(contract hrs per year) ÷ (pay periods per year)
where contract hrs per year = (contract ratio to fit FT hrs per day) × (contract days per year)

Spreading wages over full year Use formula with periods per year equal to the shorter contract year of most teachers. Wages received over a full year are considered earned over the shorter year. Use formula with periods per year equal to the shorter contract year of most teachers. Wages received over a full year are considered earned over the shorter year.

For example: If the contract specifies 187 days at 6.5 hours per day with 21 pay periods the total number of hours would be 1,215.5 (187 days x 6.5 hours) and must all be reported by the 21st pay period.

The preferred method of reporting these hours is to divide the total number of hours that must be reported by the number of pay periods and report that number every pay period.

By the end of the last pay period, all hours will have been reported. By using this method, the hours will exactly reflect the wages.

For example: Divide 1,215.5 hours by 21 pay periods to get 57.9 hours per pay period. By reporting 57.9 hours each pay period, you will have reported all 1,215.5 hours by the 21st pay period.

Less than full-time contract employees should be reported proportionately to full-time employees.

Part-time reportable hours = (contract hours per year ÷ pay periods per year) where contract hours per year = (contract ratio to full-time X full-time hours per day X contract days per year)

For example: A four-fifths teacher would be reported for 187 days at 5.2 hours per day (four-fifths of >6.5 hours) for a yearly total of 972.4 hours. The number of hours reported each pay period would be 972.4 divided by 21, or 46.3 hours.

Variations on this formula are possible and should not be a problem as long as the total hours are reported and there is a realistic relationship between hours and wages.

Teachers who spread their wages over 26 pay periods are a special case. The wages that are paid in each pay period represent 1/26 of the contract instead of 1/21. The money is considered to have been earned during the 21 or 22 pay periods that fell within the normal school year. You must report the hours to reflect this. To do so, divide the total hours to be reported by the actual number of pay periods the employee worked. The wages reported over the summer, usually pay period 22 through pay period 26, should be reported without hours. You will not report hours for the summer pay periods unless the employee actually worked during the summer.

For example: A teacher was paid wages over the summer but did not actually work during the summer. You should report 57.9 hours and 1/26 of the wages per pay period for 21 pays; report the hours just as you would for an employee that only worked and is paid over 21 pay periods. DO NOT report hours for pay periods 22 through 26 in the summer.

Last updated: 04/13/2012