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Faculty with a 10-month appointment who chose to receive twelve (12) paychecks (August  through July) are considered to be on the salary deferral payment option. This means they have chosen to defer a portion of their monthly salary during the 10-month academic year (August to May) in order to receive pay during the months of June and July.

During the months of August through May, the gross pay is adjusted by the salary deferral amount prior to the calculation of taxes and deductions. Taxes on the deferred portion are withheld during the months of June and July when the salary deferral is paid back to the employee.