The University of Texas at Arlington

Contents

1. General Information
2. Advance
3. Lump Sum Payment
4. Payment Process for Accrued Vacation for Terminated Employees
5. Payment Process for Accrued Vacation/Sick Leave for Deceased Employees

1. 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.

2. Advance

   Advance payment to current employees for accrued vacation is not authorized.

3. Lump Sum Payment

   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 on the semi-monthly payroll following the termination date.

   1. Longevity is not included in the calculation of the vacation hourly rate.

   2. The accrued vacation lump sum payment is not subject to Optional Retirement or Teacher Retirement benefits.

   3. The payment is subject to federal withholding tax and FICA deductions.

   No payment is made for unused sick leave to an employee who resigns, is dismissed, or separates from University employment.

4. 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 account 18-3130-7414.

   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. 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.