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Procedure BF-P-PR7 Accrued Vacation, Sick Leave, Death Benefits, Excessive Absences and Mid-Month Terminations


Dates Effective From: 05 May 2014
Responsible Officer: Vice President for Business Affairs and Controller
Sponsoring Department: Payroll Services
Errors or changes to: Office of Legal Affairs policysite@uta.edu

    Contents


  1. Objective
  2. Scope
  3. Procedures
  4. Definitions
  5. Relevant Federal and State Statutes
  6. Relevant UT System and UTA Policies, Procedures, and Forms
  7. Appendices
  8. Contact Information
  1. Objective


    This procedure provides information regarding the payment of accrued vacation for terminated university employees and accrued vacation/sick leave time for UT Arlington employees who are deceased. In the event that an employee is terminated mid-month or has excessive absences, certain practices are followed as outlined in this procedure.

  2. Scope


    This procedure applies to all UT Arlington employees.

  3. Procedures

    1. Responsibilities
      1. Payroll Services
        • Processes payments for an employee's accrued vacation and when applicable, sick leave time
      2. Employing Department
        • Completes and forwards the Departmental Vacation/Holiday Payroll Voucher (Form 1-6) to the Office of Human Resources for payment of accrued vacation for terminated employees
        • Prepares separate forms of the Departmental Vacation/Holiday Payroll Voucher (Form 1-6) for vacation pay and sick leave pay for deceased employees
        • Ends an employee's assignment in UT Share if a monthly employee is terminated mid-month
        • Contacts Payroll Services if termination or any adjustments are made during Payroll Processing Dates
      3. UT Arlington Employee
        • Verifies the amount of vacation and sick leave time an employee has accrued
    2. Section I. General Information

      Employees report the use of vacation and sick leave hours on a monthly or semi-monthly time report or a monthly absence report as required by their position classification. Payment of vacation or sick leave for current employees is included in the regular paycheck.
    3. Section II. Lump Sum Payment

      Upon termination of employment, an employee who has at least six months of continuous service at UT Arlington will be paid accrued vacation in a lump sum. Payment will be processed when:
      1. The employee's final payment has been issued and all deductions and accruals finalized
      2. The Departmental Vacation/Holiday Payroll Voucher is received by Payroll Services with all approvals

      Payment will be made on either the Off-cycle payroll or the employee's next regular pay cycle following final payment, whichever comes first.
      1. No payment is made for unused sick leave to an employee who resigns, is dismissed, or separates from University employment.
      2. Longevity is not included in the calculation of the vacation hourly rate.
      3. The accrued vacation lump sum payment is not subject to Optional Retirement or Teacher Retirement benefits.
      4. The payment is subject to federal withholding tax and FICA deductions.
      5. The payment is subject to holds placed by the Texas State Comptroller's Office. Travel and vendor payments will be held for any debt reported to the Comptroller's office, as will payments of lump sums of vacation and/or sick leave for terminated or deceased state employees. https://fmx.cpa.state.tx.us/fmx/pubs/hold_guide/04-payments.php
    4. Section III. Payment Process for Accrued Vacation for Terminated Employees

      The employing department completes the Departmental Vacation/Holiday Payroll Voucher (Form 1-6) to initiate payment of vacation accrual. A separate voucher will be prepared for each terminating employee.
      1. The expenditure is recorded in cost center 320011-57601.
      2. The employing department forwards the Departmental Vacation/Holiday Payroll Voucher (Form 1-6) to the Office of Human Resources for verification of accrued vacation hours.
      3. After verifying the hours to be paid, the Office of Human Resources forwards the Departmental Vacation/Holiday Payroll Voucher (Form 1-6) to Payroll Services for processing.
      4. Payroll Services distributes the payment according to the instructions indicated by the employee on the voucher, e.g., direct deposit or mail to forwarding address. Therefore, it is extremely important that the department obtain correct information from the terminated employee.
    5. Section IV. Payment Process for Accrued Vacation/Sick Leave for Deceased Employees

      Payment of accrued vacation and sick leave of a deceased employee is paid to the estate of the deceased employee in an amount equal to all unused vacation time and one-half of unused sick leave time, not to exceed 336 hours. Longevity is not included in the calculation of vacation and sick leave paid to the estate of the deceased employee.

      The employing department prepares separate Departmental Vacation/Holiday Payroll Voucher (Form 1-6) for vacation pay and sick leave pay. The vouchers are submitted together to Human Resources for verification. Human Resources will forward the two vouchers to Payroll Services for processing. When the checks are prepared, Payroll Services delivers the checks to Benefits in Human Resources for distribution to the estate of the deceased employee.
    6. Section V. Absence Without Pay

      An employee must complete the six-month probationary period before he/she is eligible to be paid for vacation. Therefore, if an employee is absent from work for reasons other than illness and state approved holiday, the absence is without pay. See Vacation Leave Policies (HR-LA-PR2).
      1. For more information about leave without pay see Employee Leave of Absence Without Pay (HR-LA-PR10).
      2. If adjustments are made during Payroll Processing Dates, contact Payroll Services immediately at (817) 272-5426.
    7. Section VI. Mid-Month Terminations

      If a monthly employee terminates mid-month, the employing department ends the assignment in UT Share. If termination is during Payroll Processing Dates, contact Payroll Services immediately at (817) 272-5426.

      If the monthly payroll has already processed when Payroll Services receives notification of an employee's mid-month termination, Payroll Services adjusts the final check for proper payment, if possible. If the time frame does not allow for such adjustment, Payroll Services cancels the entire paycheck or direct deposit. The employee is then paid on the next Off-cycle payroll or the employee's next regular pay cycle, whichever comes first.
    8. Rationale

      Upon termination of employment of an individual who has at least six months of continuous service at UT Arlington, accrued vacation is paid in a lump sum. Payment will not be made for sick leave to an employee who resigns, is dismissed, or separates from university employment. An employee must complete the six-month probationary period before he/she is eligible to be paid for vacation.
  4. Definitions


    N/A

  5. Relevant Federal and State Statutes


    N/A

  6. Relevant UT System and UTA Policies, Procedures, and Forms


    Payroll Processing Dates


    The following can be found by entering the document title in the search bar on the University Policies, Procedures, and Forms page:


    Departmental Vacation/Holiday Payroll Voucher (Form BF-P-F9)

    Vacation Leave Policies (HR-LA-PR2)

    Sick Leave Policies (HR-LA-PR3)

    Absenteeism (HR-LA-PR7)

    Death of an Employee (HR-LA-PR16)

    Overtime (HR-LA-PR28)

  7. Appendices


    N/A

  8. Contact Information


    All topics in Procedure:
    Payroll Services
    817-272-5426 or payroll@uta.edu URL: https://www.uta.edu/business-affairs/staff/accounting/payroll-services.php

    Website access:
    Office of Legal Affairs
    817-272-5577 or policysite@uta.edu