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Each year Payroll Services closely monitors the Financial Leave Accrual system to ensure that the usage and assessment rates being charged provide adequate funding for vacation payout.  Department accounts are assessed a percentage of each employee’s gross pay as the vacation is earned.  The charge is recorded as a benefit expense in Sub 6 in the PPP5302 – Distribution of Payroll Expense Report.  The rate charged to the department is based on:

1.      A factor based on an estimate of the campus average annual usage.

2.      The rate at which an employee earns vacation leave as determined by the leave accrual code for each appointment recorded in the EDB.

Assignment of the leave accrual code is based on the employee’s length of service and the policy or collective bargaining agreement pertaining to the employee’s title.

3.      The cost of employee benefits based on the employee’s benefit category.

The three possible benefits categories are:

• No retirement/no FICA
• Retirement/no FICA or FICA/no retirement
• Retirement and FICA

4.      The fund from which the employee is paid.
Funds from the assessment are put into a central reserve account.  When vacation is reported in the Payroll Time Reporting (PTR) system as used or paid, funds from the reserve account are credited to the department account/fund to cover the usage or payment.