UNCLASSIFIED LEAVE PAYOUT

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• UNCLASSIFIED LEAVE PAYOUT
• FACT SESSION

WEDNESDAY - SEPTEMBER 19
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• Unused Vacation at Termination
• Faculty, Academic Staff and Limited appointees
  are entitled to be paid for any unused vacation,
  floating holiday ALRA upon termination from
  eligible UW-Madison employment.

• Supervisors, however, have the right to require
  the employee to use the vacation prior to
  termination (provided there is sufficient time to
  do so). If the employee is informed, in writing,
  that all or a portion of the vacation must be
  used prior to termination but the employee does
  not use the vacation, the employee cannot be paid
  for the unused vacation it simply lapses.

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Payment of Unused Vacation

• Payment for unused vacation may be made as a lump
  sum or by extending the employee on the payroll
  at the discretion of the department. Although
  either option may be used, the lump sum method is
  much simpler to calculate.
• When doing the calculations, work the equation
  straight through and round the end result. Round
  days and dollar amounts to two decimal places and
  hours to one decimal place.

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• UCLU Screen
• V use this to view the persons leave for a
  specific appointment. Use Appt
• F use this to forecast leave payout. Use
  Appt
• Enter the letter in this location then enter
  the Appt

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This is what the screen would look like if you
entered the letter V (view leave) and the PID
VN vacation VC vacation carryover SL sick
leave FH floating holiday
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This is what the screen would look like if you
entered the letter F (forecast) and the PID
This is using an end date of 10/01/2007 VAC
vacation F Hol floating holiday This persons
balance is 44.6 hours of VAC 36 hours of F Hol.
Total hours to be paid out 80.6 Unclassified
get new vacation and floating holiday allocations
July 1
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Calculating the Lump Payment

• Example 1
• An employee earning 24,000 (monthly rate
  2,000) on an A (12 month) basis terminates with
  88 hours of vacation. The person would be paid a
  lump sum of 1,000.
• 88/176 x 2,000 1,000
• Example 2
• An employee earning 25,782 (monthly rate
  2,148.50) on an A basis terminates with 131.8
  hours of unused vacation. The person would be
  paid a lump sum of 1,608.93.
• 131.8/176 x 2,148.50 1,608.93

• To determine the amount to be paid to the
  employee, divide the number of hours of unused
  vacation (including carryover) by 176, and
  multiply by the monthly rate of pay. Lump sum
  payments for vacation are excluded from
  retirement coverage.

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Overuse of VacationCalculating the Repayment
Upon Termination

• Faculty, Academic Staff and Limited appointees
  are liable for overuse of vacation upon
  termination. Although they may use anticipated
  vacation for the fiscal year, they must repay any
  negative actual balances upon termination. Once
  the end date is entered into the appointment
  system, any negative balances will be shown.
  Overused vacation is generally repaid by reducing
  the final paycheck.
• FLSA NOTE Rules promulgated by the federal
  Department of Labor for government employees
  appear to allow the reduction of pay in
  increments of less than one day without
  jeopardizing the exempt status of those employees
  under the Fair Labor Standards Act. Therefore,
  the University may reduce the final paycheck in
  increments smaller than one day when an exempt
  employee overuses vacation.

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Overuse of VacationCalculating the Repayment
Upon Termination

• Example 1
• A full-time employee whose salary is 24,000 uses
  all 176 hours of vacation for the fiscal year by
  December 1 and then resigns effective December
  31. From July 1 through December 31, he actually
  earned 88.2 hours of vacation. Thus, he overused
  vacation by 87.8 hours 88.2 earned 176 used
  -87.8. Divide the number of hours overused by
  176 and multiply by the monthly rate to determine
  how much needs to be repaid. He owes the
  University 997.73
• 87.8/176 x 2,000 998
• Example 2
• A full-time employee whose salary is 30,000 uses
  all of her vacation carryover and 60 hours of the
  current fiscal years vacation before resigning
  on October 15. Using the Forecast screen on
  UCLA, we can tell that she would earn 51.2 hours
  of vacation from July 1 through October 15, and
  that she overused her vacation by 8.8 hours. Her
  final paycheck should be reduced by 125.00.
• 8.8/176 x 2,500 125.00

• The amount of overpayment is calculated by
  dividing the number of hours of overused vacation
  by 176, and multiplying by the employees monthly
  salary rate.

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Sick Leave Certification

• When an unclassified employee retires, the sick
  leave certification cannot be processed until
  after the 15th of the following month. That is
  after the credit cycle has been run and the sick
  leave credits granted. When a Madison Campus
  employee retires, UWPC completes the sick leave
  certification and updates the UCLA system. In
  the UCLA, the sick leave balance is removed and
  the message printed in history is "sick leave
  converted to health insurance." Therefore if a
  division/department views the UCLA system, and
  the sick leave balance for a recently retired
  employee is still on the "P" screen, they can
  assume the sick leave certification has not yet
  been completed. If there is no sick leave
  balance, and when viewing the "H" screen the
  message says, "sick leave converted to health
  insurance," then the sick leave certification has
  been completed and forwarded to ETF.

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• Reminders Leave earnings are credited on the
  15th of each month for the previous month. The
  payroll and appointment records must also be
  updated.
• If you process a Pay Data to pay out leave time
  PLEASE circle/highlight that funding string on
  the Pay Data so we know that is what you want
  paid.
• In the comments section in Pay Data also note
  that you are paying out xx hours of leave.

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Questions?
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