Fiscal Operations Manual
Section 400: Expenditures
Employing departments must pay Other Payroll Expenses (OPE). OPE is the cost to the department of an employee in addition to the gross salary. OPE is charged proportionately to each index from which an employee is paid. When an account redistribution occurs, OPE will follow the transaction, and be redistributed accordingly.
OPE includes employer contributions for PERS, FICA, medical insurance and workers compensation.
The OPE amount paid for each employee is based upon the type of employment, the gross pay amount, retirement system eligibility, and benefits. OPE varies monthly and annually, but a rate is estimated by the Budget Office so that departments can plan for this expense.
Encumbrances are established shortly after the beginning of the fiscal year and adjusted on a monthly basis throughout the remainder of the fiscal year. Encumbrances are calculated separately for salary and OPE. Estimated OPE charges calculated by employee class codes can be seen on Banner form NTRFRNG. A list of Employee classes may be found at http://oregonstate.edu/admin/hr/hristeam/empclass.htm.
Encumbrances are not liquidated using the actual expense transactions. Encumbrances are adjusted monthly, based on the forecast pay amounts and predetermined OPE percentages of these forecast pay amounts for a given FOAPA distribution.
To find the detail of all OPE posted to an index for a specific period:
OPE charges are redistributed to indexes based on the labor distribution attached to the pay. When pay is redistributed, the OPE is also redistributed. When pay is moved between a federally funded and non-federally funded index, OPE will change by the amount of the SAIF deduction. See FIS 1107-01 for OPE correction instructions.
The following benefits may be taxable to the employee:
For more information see Section 900: Taxable Fringe Benefits in the Payroll (PAY) Manual.
Programs that have been instituted at various times by the institution have provided a subsidy or incentive to employees in exchange for tenure relinquishment with resignation or early retirement.
The fee remission is the payment of resident graduate instructional tuition by the University on behalf of the graduate student as part of their appointments. It is shown as a credit on the student’s accounts receivable. See FIS 002 Definitions for further explanation.
The Recruitment and Retention Differential Policy provides that Graduate Assistants (teaching and research) receive a $110 differential payment for each term until a health plan is provided for Graduate Assistants. For further information, see Graduate Employee Contract Information at http://osu.orst.edu/admin/hr/gradstud/home.html and the OSU Graduate School home page at http://oregonstate.edu/dept/grad_school/. Questions about how this policy relates to sponsored research should be directed to the Office of Sponsored Programs at Sponsored.Programs@orst.edu.
The PERS Benefit Equalization Fund was established to make payments to retired employees who were contractually entitled to benefits in excess of the cap placed on 401 (a) benefits payable from regular PERS by Internal Revenue Code 415. OUS is charged the assessment, who passes it along to the appropriate institutions. OSU, in turn, passes any cost on to the appropriate hiring unit.