PTR MANUAL

UCLA Payroll Services

A guide for departments to use when processing Payroll Time Reporting (PTR) transactions.
PTR MANUAL, SECTION E - SPECIAL PROCESSES

E16.0  FINAL PAY FOR TERMINATING EMPLOYEES


The first step in the separation process is for the EDB preparer to process the separation on the EDB using the Separation bundle.  Once the separation is processed, the PTR preparer should calculate all pay due to the employee and make sure the employee receives the final payment on time as outlined in the California Labor Laws.  

Additional information regarding the separation process and the processing of payments for separating employees is available in the following manuals and sections:

  1. PPS Manual, Section C1.5, California Labor Code
  2. EDB Manual, Section B12, Separating Employees
  3. EDB Manual, Section C9, Academic Separations
  4. EDB Manual, Section D10, Staff Separations
  5. PTR Manual, Section F4.7,  Vacation Pay for Separating Employees

Procedures for Final Pay

There are slightly different procedures in effect depending upon the circumstances of the termination.  The procedure for each category is outlined below.  The three categories are as follows:

  1. The employee has resigned and given 72 or more hours notice.
    1. The EDB preparer should enter the separation on the EDB at least two days prior to the separation, adding the PTR preparer as a recipient of the PAN. 
    2. The PTR preparer should calculate the wages owed through the separation date and process an EDLR transaction for both the wages and the terminal vacation pay.  (Note:  At least three days notice is needed by Payroll for off-campus locations such as UCOP and Lake Arrowhead).
      • Carbon copy Payroll Services on the PAN. For the required PAN comments, please see Section E16.5, Separation Check Request Comments.
      • For employees receiving paper checks (check disposition 1, 2, or 3) the department must pick up the check at the Payroll Services window and give it to the employee on his or her last day of employment.  (Note:  Checks for off-campus locations such as UCOP and Lake Arrowhead will be express mailed to the off-campus location.)
      • For employees who are paid electronically, final earnings will be distributed via direct deposit on the last day of employment.
  2. The employee has resigned and given 71 hours or less notice.
    1. Employees receiving paper checks (check disposition 1, 2, or 3) need to be told that his or her final check will be available within 72 hours if he or she wishes to pick it up at the Payroll Services window.  Otherwise, if the employee would like the check mailed to the permanent address on the EDB, verify the permanent address with the employee and tell him or her that the check will be MAILED within 72 hours (NOT received within 72 hours).
    2. For employees who are paid electronically, please contact your department's payroll representative regarding the distribution of the final payment.  Please check the Payroll Services Department Representative Contact List for your department's payroll representative contact information.
    3. The EDB preparer should immediately enter the separation on the EDB adding the PTR preparer as a recipient of the PAN. 
    4. The PTR preparer should immediately calculate the wages owed through the separation date and process an EDLR transaction for both the wages and the terminal vacation pay.
      • Carbon copy Payroll Services on the PAN. For the required PAN comments, please see Section E16.5, Separation Check Request Comments.
      • If the employee is picking up the check, the department will need to notify the employee when the check is ready for pick up.
    5. If the check is to be mailed to the employee, Payroll Services will mail the check according to the instructions on the PAN.
  3. The employee is going to be discharged - a paper paycheck MUST be given to the employee at the time of discharge.
    1. If the discharge is planned in advance:
      1. At least two days prior to the employee's separation date the EDB preparer should enter the separation into the EDB.
      2. The PTR preparer  must calculate the wages he or she will be owed through the separation date and process an EDLR transaction for both the wages and the terminal vacation pay. (Note: PTR preparers at off campus locations, such as UCOP and Lake Arrowhead, will need to process the EDLR transaction at least three days prior to the employee’s separation date to provide a day for checks to be express mailed to the department.) 
        • Carbon copy Payroll Services on the PAN. For the required PAN comments, please see Section E16.5, Separation Check Request Comments.
        • The department must pick up the check and give it to the employee on his or her last day of employment. (Note: Checks will be sent to departments at off-campus locations, such as UCOP and Lake Arrowhead, by Federal Express.)
    2. If the discharge is not planned in advance, the department will need to request a hand-drawn check. Please keep in mind that Payroll Services needs approximately 4 hours to produce a hand-drawn check. (Note: PTR preparers at off campus locations, such as UCOP and Lake Arrowhead, will need to process the EDLR transaction at least one full day prior to the employee’s separation date to provide time to produce the check and express mail the check to the department.)
      1. As soon as it is known that an employee will be discharged, the EDB preparer must enter the separation into the EDB. 
      2. The PTR preparer must calculate the wages he or she is owed through the separation date and process an EDLR transaction for both the wages and the terminal vacation pay. 
        • Follow the same directions as for processing a Rush Check. 
        • Carbon copy Payroll Services on the PAN. For the required PAN comments, please see Section E16.5, Separation Check Request Comments.
        • Immediately after processing the EDLR transaction, telephone your departmental payroll representative to inform him/her that a hand-drawn check request has been sent. Please check the Payroll Services Department Representative Contact List for your department's payroll representative contact information.
        • The department must pick up the check and give it to the employee on his or her last day of employment.
      3. Payroll Services will immediately look for the PAN from the EDLR transaction and begin to process the hand-drawn check. Payroll Services will contact the department when the check is ready.  (Note: Checks will be sent to departments at off-campus locations, such as UCOP and Lake Arrowhead, by Federal Express.

E16.1 Calculating Final Regular Pay For Terminating Employees

Monthly Primary Pay Schedule

For employees paid with a monthly rate, calculate the percentage of pay for the final month:

  1. Determine the total number of hours on pay status (including any paid time off) for the employee's final month.
  2. Divide the total number of hours on pay status by the total number of hours in the final month, which are listed on the Monthly Working Hours Calendar.

For employees paid with an hourly rate:

Determine the total number of hours of pay status (including any paid time off) for the employee's final month.  This will give the preparer the number of hours needed to pay the employee for the final month.  (There is no monthly hourly pay cycle except for readers and tutors who also hold an academic Sub 0 appointment.)

Bi-Weekly Primary Pay Schedule

  1. Determine the total number of hours on pay status (including any paid time off) for the employee's final pay period.
  2. If the employee's termination date precedes the payday for the pay period before the employee's final pay period, the hours owed for this earlier pay period must be added to the hours for the final pay period and paid to the employee on the date of separation.

E16.2  Calculating TVP Payment for Terminating Employees

  1. Verify that the employee's vacation balance on the EDB (IHRS or ILAH) is accurate.
  2.  
    PPIHRS0-I0930                    EDB Inquiry                  02/14/YY 13:11:54
     01/30/YY 23:41:40           Hours on Pay Status               Userid:  ABCDE  
     ID: 000222596 Name: JOYCE,JAMES I                             LAD:  01/16/YY
     Hm Dept: 352500 PAYROLL         Emplmt Status: A Pri Pay: MO                 
                                                                                  
     Hours on Pay Status:  Curr Mnth:        .00                                  
       Jan:     184.00     Jul:     168.00                                        
     * Feb:     168.00     Aug:     184.00           YTD Tot Hrs  :    352.00     
       Mar:     184.00     Sep:     168.00           YTD Reg Hrs  :    320.00     
       Apr:     160.00     Oct:     176.00           YTD OT Hrs   :       .00     
       May:     184.00     Nov:     176.00           YTD NonWk Hrs:     32.00     
       Jun:     176.00     Dec:    	168.00           Avg Hr/Wk    :     40.00     
                                                     Prior Service Mths :    0    
     Lv Accr Hrs:       Balance      Maximum         Empl Service Credit:         
     Vacation          344.812272      448.06             From Date     :
     Sick Leave       1291.061944                                                 
     Compensatory         .00                                                     
     Paid Time Off        .000000                                                 
                                                                                  
     Next Func:      ID:           Name:                            SSN:          
                                                                                  
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      F:                          9-MainMenu                         12-Exit

  3. Calculate the hourly rate of pay if the employee is paid monthly. Note: For all employees, TVP is paid at an hourly rate. If the employee is paid on a title code which has a published hourly pay rate, use the hourly pay rate from the appropriate title and pay plan. Otherwise, convert the monthly salary to an hourly rate by dividing the monthly salary by 174.  
  4. Determine whether or not the employee is eligible to accrue additional vacation hours during the final accrual cycle.  If the employee is eligible to accrue additional vacation, calculate the final amount of vacation hours the employee should accrue through the termination date.
  5. Determine all vacation usage for the employee that has yet to be reported in PTR, including any vacation usage planned by the employee through the termination date.

    For departments reporting monthly employees' usage one month in arrears, include any usage of vacation in the prior month as well.
  6. Calculate the employee's final vacation hours balance by taking the current balance, adding on any additional hours to be accrued and subtracting any usage through the termination date.
  7. For Bi-weekly employees, depending upon the termination date, and the end of the last quadriweekly accrual cycle and pay compute of the quadriweekly pay period, it may be necessary to determine vacation accrual manually for the quadriweekly cycle and to add that accrual to step 2 above.

Examples of how to process final pay for employees are shown on the following web pages:

EDB and PTR preparers may also want to review the Right Now Web FAQs for additional information on the separation process.

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