Salary and benefits for regular faculty and staff will be encumbered/committed in department cost centers. This includes salary, retirement, insurance, social security and Medicare. This feature will allow departments to more accurately project the available balance in their cost centers.
How It Works
Each pay period, new encumbrances will be calculated and posted in SAP cost centers based on the employee wage and benefit data stored in the SAP system.
Departments must notify the appropriate HR office of any changes to an employee's position or status. If they fail to do this in a timely manner the encumbrances/commitments will not reflect the appropriate amount. For example, if an employee leaves the university but the department does not inform the employment office, then the employee will still be in active status and an encumbrance will still be calculated and posted for that employee.
Note that an amount for social security tax will still be encumbered even after an employee reaches their maximum ($7254.00) social security tax liability for the calendar year. This issue will correct itself with the first encumbrance run in January of each year.
Where to find encumbrances
In SAP you will find the encumbrances under Funds Management Reports-BCS Available Balance (see example cost center report)
The Salary and Benefits encumbrance file that is run after every payroll (bi-weekly and semi-monthly) is found at: https://www.cmich.edu/fas/fsr/OAC/Payroll/Pages/reports.aspx
This report will give you a breakdown by employee and what you have committed for the fiscal year.
Benefits Not Encumbered
Temporary staff, Global Campus (CEL) faculty and students are the only employee sub-groups that will not have salary or benefit encumbrances due to the nature of these types of positions.
Benefits related to one-time payments will not be encumbered. For example: higher class pay in effect for one pay will not have benefits encumbered in advance.
Please call Payroll at 774-3481 if you have any questions regarding encumbrances.