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Leave Payout Process

Complete the following steps when processing a Payroll Adjustment form for a leave payout:

  • Print the detailed leave report for the last cycle that the employee worked and calculate any manual adjustments (accruals & leave used that is not reflected).
  • Complete the Payroll Adjustment form with the total payout due in the leave payout section (LV1).
  • Attach the detailed leave report to the Payroll Adjustment form and document any manual adjustments in the description of the Payroll Adjustment form.  If there are no manual adjustments, this can be left blank.
  • Submit the completed form to Payroll based on the payroll calendar deadline for the pay cycle the leave will be paid.

NOTE: A leave payout can not be processed with ANY regular earnings including non-benefit eligible positions.

The following excerpt below is from the the Time Entry & Leave Processing Manual:

Regular and applicable contingent II staff as well as 12-month faculty are eligible for payout of unused accumulated annual, holiday and compensatory time (compensatory time applies to nonexempt employees only).  To process a leave payout, follow the steps below:

  •  Complete the Change Par Form to inactivate the individual’s employment.  The Change Par Form must contain the appropriate signatures of authority and be forwarded to the HR/Payroll staff for review and processing.  Upon processing, the termination data is entered into the individual’s job record. 
  • Once the termination data has been entered into the HR system, the individual will no longer appear in the department’s time entry and systematic payment and leave processing will cease.
  • Retrieve the individual’s ending leave balances from either the online balance screen (Benefits>Manage Leave Accruals>Review Accrual Balances) OR the Detailed Leave Report.  The online balance screen provides the leave balance in hours as well as the monetary translation for those hours (individual’s hourly rate x the leave hours).  Note:  The effective date of separation will determine the pay period in which the balances should be based upon.  In some instances, the last leave cycle processed may not be as recent as the pay period for the separation date.  If this is the case, the payroll preparer may need to manually add in accrual(s) and/or subtract recently used leave to obtain the most recent leave figures.
  • Sum the hours for each unused leave type (annual, holiday and/or compensatory) and multiply the hours by the individual’s hourly rate to obtain a monetary figure for total payment  OR sum the “Hours Value” (on the online screen) for each unused leave type to obtain a total payout figure.  Complete the Payroll Adjustment Form to identify the leave to be paid out as well as the dollar amount for payment.  The Payroll Adjustment Form must contain the appropriate signatures of authority and be forwarded to the HR/Payroll staff for review and processing.
  • The last pay check will be the final leave payout.  This payment will include NO deductions (health, retirement, etc.) other than taxes.