Payroll requirements and special considerations

All salaries, wages, and special payments paid to faculty members and employees of Duke University should be charged to one of the 60xxxx G/L accounts. Different G/L accounts apply based on job position and title.

Payroll is deadline driven, with different schedules and due dates for monthly (exempt) and bi-weekly (non-exempt) personnel.

Extra attention and coordination is needed for grant-funded personnel who are not administratively housed in the grant-owning unit. Grants and contracts administrators from both units should work together to determine:

• Who will processes iForms
• The correct G/L accounts are being used
• Monthly and bi-weekly payroll deadlines are being met
• Routine monitoring and reconciliation is performed

Access GAP 200.171, Cross Organizational Unit Payroll Management on Sponsored Projects for additional information.

Faculty members (except SoM/SoN) on nine-month appointments may receive summer supplements through the Duke payroll system up to a maximum of three-ninths (3/9ths) of their base salary rate for the immediately preceding appointment term. Duke University defines an Academic Year as September through August. Summer supplements may come from a variety of sources (including University and non-federal) and may be paid over the span of the four months designated summer months. 

Summer supplement payments occur in May, June, July, and August. As a result, the “summer” period is split across two fiscal years. May and June fall at the end of one fiscal year. July and August fall at the start of the next fiscal year. For example: May–June 2026 = FY26; July–August 2026 and May–June 2027 = FY27. Illustration below demonstrates how the four “summer months” are related to a single Academic Year (AY) and split across two Fiscal Years (FY).

The Summer Planning Tool in myRESEARCHhome includes the summer supplement rules in its calculations, allowing Grant Managers to more easily plan and track summer effort for academic faculty. Access guidance on the summer planning tool.

Federally funded summer supplements 

If faculty receive summer supplements as a result of effort expended on federally-sponsored projects, the supplements must be booked and paid under the following conditions:

1. For any one month, faculty may charge no more than 75% of their effort to federal grants and contracts, including federal flow-through dollars. The distribution of pay should reflect the effort expended.
2. Over the four months, faculty may receive no more than two and a half ninths (2.5 effort months) from federal sources, including federal flow-through projects. Faculty may receive the remaining one-half ninth from institutional or non-federal funds.

An exception to the above conditions may exist when a faculty member is conducting field work or other off-site research during the summer. In these cases, faculty may devote 100% effort to their project(s), even those that are federally-funded. Such instances should be supported through adequate documentation, such as receipts, air travel, etc. that would be sufficient to verify the faculty member’s activity in the event of an audit. The school, center, or institute is responsible for approving these exceptions and retaining supporting documentation in accordance with applicable policies and Duke GAPs.

Implications for academic year effort

Faculty may commit, perform, and receive compensation from federal and non-federal sources during the academic year. The distribution of pay should reflect the effort expended; therefore, faculty may commit and perform effort during the academic year and charge it to their grants. Practices for committing and managing effort on federal and non-federal funds during the academic year, including approaches to shared salary support, should be applied consistently within the faculty member’s organizational unit, such as the department, school, or institute, as applicable.

Federal sponsors have emphasized the alignment of effort and compensation. By applying this guidance, Duke University is providing faculty with the ability to recover a full three-ninths of salary in the summer from a combination of federal, non-federal, and Duke University sources and have the distribution of payments reflect effort expended.

For related Duke Payroll policies, access supplemental payments on sponsored projects. 

For faculty appointment and related policies, access The Duke University Faculty Handbook or Research Policy Manual. 

Non-compensatory payments are payments Duke University makes to individuals who are receiving payments for scholarships, fellowships, educational enrichment opportunities requiring no services, or post-doctoral training activities. Recipients should not have a work requirement nor provide any type of service for or on behalf of Duke University. Individuals receiving these payments are not Duke employees, but are receiving funds through Duke University for educational enrichment opportunities.

Access the Corporate Payroll Services guidance on non-compensatory payments for details and information on processing these payments. 

Stipends and tuition remissions may be used on sponsored projects as a form of financial assistance for undergraduate students, graduate students, professional students and postdoctoral fellows. Specific G/L accounts should be used depending on the type of financial assistance and the classification of the recipient. 

Tuition remission costs are calculated using the University’s “Average Rate Basis (ARB)” methodology which has been approved by our Federal Cognizant Agency (DHHS). These rates are applied consistently across the University, regardless of funding source. Tuition Remission is not included in the Modified Total Direct Cost when calculating F&A.

• The Graduate School rates for tuition, fees, and stipends
• The Graduate School tuition remission policies

Supplemental payments to exempt individuals may be allowable on sponsored projects, subject to restrictions based on employee and funding type. Payments to individuals for services above and beyond their institutional base salary may be allowable on Federally-funded sponsored projects as governed by the requirements in the Federal Uniform Guidance (2 CFR 200.430); the effort must be outside the academic year (for all faculty on 9-month appointments) or be documented as outside of normal duties for all other individuals. Sponsored projects funded by other non-Federal sources should be managed similarly.

Access guidance on supplement payments on sponsored projects.