The State of North Carolina does not allow advance salary payments, and the University does not have a method by which it can loan employees funds of any kind. However, there can arise a situation where the payroll documentation for a new employee might have been delayed in processing, thus missing the payroll cutoff date. Therefore, rather than penalize the employee for this delay, a Substitute Payment of salary is allowed.

Substitute Pay can only be authorized when a prospective employee's hiring has been approved by the Office of State Personnel (OSP), and that approval (PD-105) is on file with the Office of Salary Administration (EPA employees) or Human Resources (SPA employees). If this approval has not been received by the University, the employee is not entitled to receive pay, and therefore cannot receive substitute pay.

An employee applies for Substitute Pay by notifying their department, whose dean must submit a "Request for Substitute Pay" to the Vice Chancellor for Academic Affairs. The approved request is then forwarded to the Vice Chancellor for Business & Finance, and finally to the Payroll Department. Business & Finance departments initiate requests through Human Resources.

The Substitute Pay check will be available for pickup in the Payroll Department as soon as possible on or after the appropriate pay date, and will be made payable at 60% of the gross salary amount. The 40% is withheld to approximate federal, state, social security, retirement, etc. withholdings.

The employee must sign the"Request for Substitute Pay" form acknowledging receipt of the funds and authorizing the University to withhold the funds from the employee's next payroll check. (The following month, the employee's salary check should include two pay periods.)