Lump Sum Payments with Alternative Earn Codes

This document provides specialized guidelines for processing single-installment lump sum payments that use an alternative Earnings Code instead of the default earnings code “ADL -Lump Sum Regular Pay."

Background:

Each department has its own, unique pooled position number to compensate jobs assigned to the “LP” (Lump Sum Pay) E-class. When adding a new lump sum job, the default earnings code - ADL (Lump Sum Regular Pay) - will auto-populate. This code may need changed if specific compliance needs are required.

Situations requiring an alternative earnings code include: payments exempt from SURS deductions, jobs performed in a foreign country, or payments tied to grants or negotiated settlements involving signing or retention bonuses.

Quick Tip #1: A pooled position is a single position number that can be assigned to multiple employees for temporary, hourly, or student appointments. Pooled position numbers are specific to a department or college and are not standardized across the university.

Quick Tip #2: Jobs with an E-class of MM or LP or jobs with a suffix beginning with T must have a Job Type of “Overload.” While SURS deductions occur on most overload jobs, statutes exclude these earnings from 6% earnings increase calculations (see: SURS 6% FAQ).

Foreign Source Income (FSI)

Foreign Source Income (FSI) refers to income earned by a taxpayer from sources outside their country of residence. Many countries, including the United States, tax residents on their worldwide income, and taxpayers must calculate their FSI to properly report taxes.

Within the University of Illinois, the designation of a FSI employee may be applied only to foreign nationals who are nonresident aliens of the U.S. (individuals who are not U.S. citizens, permanent residents (PR), or resident aliens (RA) for tax purposes) performing employment activities outside of the U.S.

Important: Foreign source income employees may only be set up with monthly lump sum appointments.

Processing (front end):

1. Unit adds a primary job at time of hire and submits a LP job to pay the work performed:

2. Personnel Date should be the start of a Monthly pay period
3. Job End Date should be the end of the Monthly pay period
4. Job Title – Add “(FSI)” to the end:

Job titles have a 30-character limit and may need to be adjusted using University abbreviation standards (see: abbreviation guide). Adding FSI to the title will indicate on reappointments of this job that the earn code has been altered.

5. Job Type – “O – Overload”
6. Pay ID – “MN – Monthly”
7. Factor – 1
8. Job FTE – 0.000
9. Pay Rate – Confirm amount to be paid is correct
   1. No SIE form required
   2. Amount to be paid should be in Memo or Job Comments
   3. Hourly, Monthly and Annual will all be the same
10. Job Change Reason – “JB003 – Add Lump Sum Job”
11. Default Earnings
    1. Change from ADL to “FSI - Foreign Sourced Income”
    2. Add “1” hour
    3. Click update
    4. Important: If the job has both ADL and FSI earn codes, the employee will be double paid.

     12. Save and apply.

Bonus Pay No SURS (BES)

“Bonus Pay No SURS” (BES) is used for bonuses not related to services rendered and that are non-discretionary. Nondiscretionary bonuses, which employees know about and expect based on predetermined formulas, performance, attendance, or safety metrics, are typically considered part of an employee's regular wages and subject to SURS contributions.

DIA Coaching Bonus

Certain Division of Intercollegiate Athletics (DIA) coaches have contract provisions that allow them to award additional funds to employees, either from a discretionary pool or based on program milestones achieved by the end of the athletic season. In some cases, a coach’s Employment Agreement includes a bonus pool that the coach may allocate at their discretion to employees who support the program; these are referred to as discretionary bonuses. Coaching bonuses, by contrast, are bonuses triggered by specific program milestones outlined in the Employment Agreement, such as winning a Big Ten championship, advancing through a postseason tournament, and winning a postseason tournament.

Although DIA bonuses are paid using “LP” (Lump Sum Pay) E-class, they differ significantly from Service in Excess payments in that no work is being performed.

Quick Tip #1: Bonus payments such as these are atypical and unique to DIA.

Quick Tip #2: DIA will provide a worksheet and indicate whether the bonus is discretionary or a coaching bonus.

Quick Tip #3: If an employee is represented by a bargaining unit, union approval must be obtained before the bonus can be disbursed.

Quick Tip #4: While bonus payments are typically processed using the BES earnings code, there have been instances where they were paid as an Award Payment (AWD) via ANA or with the PNS (Payment Not for Service) earnings code. In 2023, it was determined that BES will be the standard earnings code going forward.

Quick Tip #5: The AWD earnings code may only be used in instances where an agreement has been pre-arranged, and payroll requests documentation be provided.

1. Personnel Date should be the start of a Bi-Weekly pay period
2. Job End Date should be the end of the Bi-Weekly pay period
3. Job Title – DISCRETIONARY BONUS or COACHING BONUS 
4. Job Type – “O – Overload”
5. Pay ID – “BW – Biweekly”
6. Factor – 1
7. Job FTE – 0.000
8. Attachments:
   1. DIA will attach payment documentation
   2. MOU is needed for employees represented by a bargaining unit
   3. No SIE form is needed
9. Pay Rate:
   1. Confirm amount to be paid is correct
   2. Hourly and Annual will all be the same
10. Job Change Reason – “JB003 – Add Lump Sum Job” or reappointment
11. Default Earnings:
    1. Change from ADL to “BES – Bonus Pay – No SURS”
    2. Add “1” hour
    3. Special Rate – Leave blank
    4. Shift - 1
    5. Click update
    6. Important: If the job has both ADL and BES earn codes, the employee will be double paid.
12. Save and apply.

Note: It is not necessary and, in this instance, generally not recommended to include an amount in the “Special Rate” field. Some DIA bonuses have been processed with the Special Rate amount included. Remove this rate.

Negotiated Signing and Retention Bonuses (RP9)

Signing and retention bonuses are governed by the specific contract negotiated between Labor & Employee Relations and the relevant bargaining unit. Eligibility criteria and bonus amounts are determined by the contract language. These bonuses are typically linked to retroactively effectuated agreements and are not subject to SURS deductions.

Negotiated bonus payments must be coordinated with IHR HRAIS, as they are processed in bulk via a flat file upload to payroll. If a payment is rejected from the file, it may be submitted manually via PARIS transaction on the employee’s primary job. PARIS transactions may also be used when the bonus population is small.

Use earn code RP9 (Lump Sum – No SURS) for these payments. This code applies to both signing and retention bonuses.

Civil Service Insurance/Medical Stipend (MIN)

A unit may offer an insurance stipend to employees who are either ineligible for the State of Illinois Employee Group Insurance Program (SEGIP) or whose RSL BasicCare coverage does not meet the minimum requirements under the Patient Protection and Affordable Care Act (PPACA) for certain visa holders (see: insurance stipends).

Each unit or college sets its own stipend scale. Providing a stipend is optional. However, if a unit chooses to offer one, the amount must be applied consistently to all eligible employees who meet the same criteria. Stipend amounts cannot be based on the actual insurance cost for individual employees.

For more information about SEGIP Health Insurance (see: System HR)

Civil Service Processing (front end):

Background:

The processing of Civil Service medical insurance stipends differs from that of Academic Professional (AP) employees. Civil Service stipends are handled through an “add a job” transaction, while AP stipends are processed via an “employee job record change.” Guidelines for AP employees are available on the IHR website (see: Academic Professional processing).

The difference is because all AP positions are exempt and include default earnings. As a result, the stipend earn code can be added directly to the default earnings of an AP job. Civil Service positions, however, may or may not have default earnings. To ensure the stipend is set to autopay, a new job must be created so that default earnings can be added. For consistency, all Civil Service medical insurance stipends should be set up on a suffix, even though some could technically be added to the primary position in the same way as AP jobs.

Processing:

1. Primary, paid position number with a suffix
2. Job Title - STP MED INSURANCE
3. Job Type – Secondary (will not show up in annual because there will be no rate)
4. FTE – 0.000
5. Hourly - 0.000000
6. Job Change Reason – “JB001 - Add Job”
7. Job Employee Class – CC for 75 hours, or CJ for 80 hours
8. Leave Category – Ineligible
9. Accrue Leave – No
10. Remove Probation
11. Remove MM/DD
12. Default Earnings:
    1. Earnings Code: MIN – Stp Med Insurance
    2. Hours/Units - 1
    3. Special Rate – The bi-weekly stipend amount (only allows 2 decimals)
    4. Shift – 1
    5. Update
13. Save and apply.

Quick Tip #1: A job end date is generally needed. If the unit has not provided a job end date, it should match the job end date of the primary job. If the primary job does not have an end date, the stipend does not need an end date.

Note: Medical stipends have previously been assigned various job titles, including “INSURANCE STIPEND” and “MEDICAL STIPEND.” In 2025, it was determined that the standard job title “STP MED INSURANCE” will be used going forward.

Payment Not for Service (PNS)

PNS is an alternative earn code used for certain payments not related to service. It is entered as default earnings, and SURS contributions are not withheld.

Smart Start Workforce Grant

Smart Start Child Care at IDHS is part of the broader Smart Start Illinois initiative. It administers Smart Start Workforce Grants, which provide child care programs with stable, ongoing funding to help them invest in quality staff. Eligible programs receive consistent, upfront payments from the state to support higher wages and classroom operations. Programs receiving these grants are required to pay classroom staff at least a designated wage floor.

Processing (front end):

1. Personnel Date should be the start of a Bi-Weekly pay period
2. Job End Date should be the end of the Bi-Weekly pay period
3. Job Title – LUMP SUM (PNS)
4. Job Type – “O – Overload”
5. Pay ID – “BW – Biweekly”
6. Factor – 1
7. Job FTE – 0.000
8. Attachments:
   1. No SIE form is needed
   2. MOU is needed for employees represented by a bargaining unit
9. Pay Rate:
   1. Confirm amount to be paid is correct
   2. Hourly and Annual will all be the same
10. Job Change Reason – “JB003 – Add Lump Sum Job”
11. Default Earnings:
    1. Change from ADL to “PNS - Payment Not for Service”
    2. Add “1” hour
    3. Special Rate – Leave blank
    4. Shift - 1
    5. Click update
    6. Important: If the job has both ADL and PNS earn codes, the employee will be double paid.
12. Save and apply.

TEACH Academy

TEACH Academy (see: Center for Education) started in 2005 as the Chancellor's Academy and is a concentrated, week-long, professional development program in partnership with teacher and district leaders in Champaign and Urbana public schools. The Academy engages approximately 100 local teachers each year. Eligible scholars gain access to a range of benefits, including exclusive events, professional networking opportunities, and a participation stipend.

Processing (front end):

1. Personnel Date should be the start of a Bi-Weekly pay period.
2. Job End Date should be the end of the Bi-Weekly pay period.
3. Job Title – TEACH ACADEMY
4. Job Type – “O – Overload”
5. Pay ID – “BW – Biweekly”
6. Factor – 1
7. Job FTE – 0.000
8. Pay Rate – Confirm amount to be paid is correct
9. No SIE form required
10. Amount to be paid should be in Memo or Job Comments
11. Hourly and Annual will all be the same
12. Job Change Reason – “JB003 – Add Lump Sum Job”
13. Default Earnings:
    1. Change from ADL to “PNS - Payment Not for Service”
    2. Add “1” hour
    3. Special Rate – Leave blank
    4. Shift - 1
    5. Click update
    6. Important: If the job has both ADL and PNS earn codes, the employee will be double paid.
14. Save and apply.