9.2 Entering Vacation Leave Payout at Termination
Purpose: Use this document as a reference for entering a vacation leave pay out at termination in ctcLink.
Audience: Payroll Administrator.
You must have at least one of these local college managed security roles:
- ZC Payroll Data Maintenance
- ZZ Payroll Data Maintenance
- ZZ SS Payroll
If you need assistance with the above security roles, please contact your local college supervisor or IT Admin to request role access.
Effective March 1, 2022: RCW 43.01.041 establishes the authority for vacation leave buyout upon termination of employment. WAC 357-31-225 or collective bargaining agreements (CBAs) provide additional rules and guidance.
Vacation leave pay out is a one-time pay entry transaction entered after the Create Paysheets process is complete.
Compute termination leave payments by multiplying an average hourly rate times the number of vacation leave hours accumulated. Determine the average hourly rate by multiplying .0064* times the monthly salary rate. The fraction of .0064 is based upon the number of work hours in an average month. Do not include premium pay such as standby, shift differential, and overtime in the monthly salary rate used as the basis for termination leave payment.
Formula for Deriving the Vacation Leave Buyout Termination Factor
Step 1: 365 days - 104 Saturdays and Sundays - 12 Holidays - 14 days of vacation leave) / 12 Months = 235 Days
Step 2: 235 Days * 8 hours = 1,880 hours in a calendar year
Step 3: 1,880 hours / 12 months = 156.66 average hours per month
Step 4: 1 hour / 156.66 average hours per month = .0064
Additionally, the balance needs to be adjusted in the Absence Management module. (See Adjusting Balances QRG for instructions).
Depending on the effective date of job termination, a paysheet may or may not be created for the respective employee record by the Create Paysheets process. If you need to manually create a paysheet, refer to the Creating a Paysheet Manually QRG.
Enter Vacation Leave Payout at Termination
Navigation: NavBar > Navigator > Payroll for North America > Payroll Processing USA > Update Paysheets > By Payline Security
Prerequisite: The employee’s job data status must be changed to “terminated” before setting up the vacation leave pay out. See the Entering Terminations and Retirements Quick Reference Guide for further instructions.
- The By Payline search page displays.
- Select the Company lookup icon and select the appropriate company or enter the code if known.
- Enter the appropriate date in the Pay Period End Date field.
- Enter employee’s ID in the Empl ID field.
- Select the Search button.
- The By Payline Security page displays.
- On the Payline tab, Earnings section, select the Add a Row (+) button.
- Select the OK to Pay box checkbox.
- Select the Override Hourly Rate checkbox.
- Calculate the rate per OFM instructions: .0064 x Monthly Salary. If it differs from the Hourly Rate displayed, you will need to override it. In that case, select the Override Hourly Rate checkbox, then enter the calculated rate in the Hourly Rate field. (Alternatively, the calculated rate could be entered in Other Earnings section, if you are entering more codes and each has a different rate).
- Enter the appropriate dates in the Earnings Begin Date and Earnings End Date fields.
- Select the Code lookup icon in the Other Earnings section and select the appropriate code.
- Select the Seq Nbr lookup icon and select the appropriate sequence number (if needed).
- Enter the hours to be cashed out in the Hours field.
- Select the Save button.
- The process to enter vacation leave pay out at termination is complete.
- End of procedure.
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