Photo by Dana Johnson
July 1 brings annual employee salary adjustments. Each year, employees who have reached the top of their job’s pay range receive a lump sum payment in lieu of a salary adjustment. Susan B. Mezger, director of compensation for Human Resources, announced three changes to this system.
• This July 1, pay ranges will increase upward by 2 percent.
• Unlike in previous years, the July increase lump sum payments will be included in the calculation of employee and matching university contributions to retirement accounts.
• A single default tax rate was previously applied to the lump sum payments. This year the payments will be taxed at the individual’s regular tax rate.