Termination Processing Procedures for Staff Employees

Monthly (S12, S10) and biweekly (BW1, BWP) appointed staff enrolled in leave plans are entitled to receive payout of benefit accrual hours at time of separation, retirement, or transferring to a different paygroup subject to policy restrictions. Use the Table of Contents button to the right to jump to procedures for the appropriate position type.

  • Payout for accruals should be processed with the last regular payroll cycle.
  • If separation payout is not included in last regular payment, per policy and State law, it should be processed in the next available off-cycle. The off-cycle fee to process separation pay is waived.
  • If a staff employee transfers to an Academic position, they receive payout for any accrued benefit hours. Payout will occur on the next available off-cycle after the transfer is finalized and time off confirmed. Again, the off-cycle fee is waived in these cases.

The department/campus determines the last day of work and initiates the termination eDoc:

  • Refer to policy and/or contact IU Human Resources (IUHR) if you need assistance determining the last day of work, retiree status, and termination action reason codes. The Termination effective date is the first day not working. You can review the policy for each time off code to determine separation payout (PTO, Vacation, Holiday, Sick, Comp, Honorary Vacation).
    • Special note: Monthly staff whose last day working is the last day of the month, their eDoc term date is the first day of the next month i.e. LDW 5/31, Term eDoc 6/1 = Process in May payroll cycle. Biweekly staff whose last day working is Friday, their eDoc term date is Saturday.
    • When the last day of the month occurs on Saturday or Sunday, the term date for monthly staff is not the first day of the next month. This usually results in the employee not having insurance deductions taken out of the separation payout.
  • When termination eDoc is final approved and saved in HRMS, the employee will be removed from the regular payroll voucher. The system will create a Final Check (FC Batch) payline. UCO Payroll will use the FC Payline to process the final payment including separation pay.

IUHR (Transaction Services) prepares the electronic adjustment voucher for payout of the last regular pay and any separation pay:

  • When the termination eDoc is finalized, IUHR will create an electronic adjustment voucher on the appropriate record number and include the following:
    • All regular pay.
    • Any time off codes for the last pay period (BW1/BWP staff only). For S12/S10 staff, time off codes for monthly staff are recorded in ePTO only
    • Any active additional pays. Be sure to indicate correct sequence number and prorate if appropriate.
    • Any eligible separation pay.
    • Funding account split(s) for each earn code based on the job record unless otherwise designated by the department via eDoc note or email to IUHR (hredocs@iu.edu).
  • IUHR will send an email to the department payroll contact requesting verification of accuracy of the adjustment voucher before sending to UCO Payroll for final processing.

 

Biweekly (BW1 and BWP) Staff Adjustment Voucher Prep:

  • Access the timesheet for the current pay period through the Payroll Processor Tab or by using the Timesheet inquiry.
    • Review timesheet to determine hours worked and any time off hours used during the last pay period of employment.
    • In Kuali Time, the timesheet can be approved to Final because we throw out terminated employees from the extract. This will allow for the approver and payroll processor’s approvals to be recorded electronically for record keeping.
  • Review Leave balances to determine payout based on years of service and policy. You should be running the IUIE Hours Balance report after each biweekly payroll closing to monitor accruals balances.
  • Calculate PTO/Vacation accrual for last pay period that is to be included in separation payout.*
    • Vacation and PTO Accrual Chart is published on the UCO website.
    • Determine accrual amount for pay period, prorate if last day is mid-pay period.
      • Determine accrual rate based on service years.
      • Take accrual rate and divide by 80 = hourly accrual rate (also on chart) .
      • Multiply hourly accrual rate times hours in pay status in final pay period = prorated accrual.
      • Add last pay period accrual to existing balance and subtract any used in final pay period to determine final payout.
    • Calculate Sick accrual for last pay period if employee is eligible for the sick payout.*
    • IUHR will prepare electronic AV for final pay period pay including separation payout.

 

Monthly (S12, S10) Staff Adjustment Voucher Prep:

  • Prior to submitting the Termination eDoc, the ePTO Administrator should work with the employee to make sure that the employee has recorded all time-off information in ePTO.
    • The employee will have access to do this until their termination date.
    • The supervisor, ePTO department, or system administrator can also add this data to the calendar for the employee.
    • The final month ePTO calendar will not be submitted or approved by the department.
  • When submitting the Termination/Transfer eDoc, the department should insert a note with the following information:
    • Statement verifying the ePTO calendar is up to date. This signifies that either the employee or the ePTO Administrator has recorded all time off on the calendar. If the ePTO calendar is changed after the eDoc is finalized, please contact IUHR to correct.
    • Special Note: employee’s whose last day working is the last day of the month, their eDoc term date is the first day of the next month = termination paperwork should be processed in the on-cycle closing of the month in which they last worked. i.e. LDW 5/31, Term eDoc 6/1 = May payroll cycle.
  • When the Termination eDoc is final approved, IUHR will access the employee’s ePTO calendar to complete the adjustment voucher to pay out the last regular pay and separation pay. When the user logs into the employee’s calendar, the ePTO system will:
    • Display a bubble by the employee’s name which indicates that employee is terminated. The employee will show in the hierarchy for one month from the termination effective date, or until the position is filled. After one month, if the position is not filled, only the bubble will display. The employee’s calendar is still available through the “Find Employee” search box for ePTO Administrators. Once the position is filled, only a central office user will be able to access the calendar.
    • Prorate the monthly accruals for the month of the effective date of the termination.
    • Provide Honorary, Sick, and Holiday balances from the Time Off Detail tab in ePTO as of the last day of the month of termination.
    • Inactivate all entries in the system for the employee after the effective date of the termination.

 

Adjustment Voucher Entry (IUHR – Transaction Services):

  • The adjustment voucher should NOT be entered until the Termination eDoc is saved to PeopleSoft.
  • Create an on-cycle electronic adjustment voucher.
  • Enter all regular pay and separation pay.
    • BW1/BWP staff:
      • Separate work/benefit hours by FLSA pay period end date (week 1/week 2).
      • RGN/RBP hours must equal total hours in pay status for the week even if the employee used time off codes. Example: Employee’s last day of work was on the Friday of the first week, so they were in pay status for 40 hours. They took 2 days off during the week. RBP hours = 40.00, PTO = 16.00 (the 16 PTO hours will subtract from the 40 RBP hours and the employee will receive 16 hrs PTO, 24 hrs RBP).
      • Include time off hours used in the final pay period based on per week usage.
      • Include any additional pay, prorate as necessary.
    • S12/S10 staff:
      • Include REG pay prorated by workdays in the month (this would include all hours in active status in the month they terminated even if ABE is listed in ePTO. The REG amount would include any accruals used and/or holidays in the month they terminated).
      • Include ABE hours to subtract from the REG pay amount.
      • Include any additional pay, prorate as necessary.
  • Enter separation payout in accordance with policy. Enter hours and system will use hourly rate in job data to calculate amount.

Paygroup Type Earn code Earn code Description
S10/S12/BWP TMP Terminal PTO hours
S10/S12/BWP TMO Terminal Holiday hours
S10/S12/BWP TMS Terminal Sick hours (IU Retirees Only)
S10/S12/BWP TMH Terminal Honorary Vacation
PB EE'S TMV Terminal Vacation (PB Plan only)
PB EE'S TMB Terminal Bonus (PB Plan only)
BW1/BWP CMP Comp Hours Payout
BW1 TVC Terminal Vacation
BW1 THL Terminal Holiday
BW1 TSK Terminal Sick (IU Retirees only)

  • Review additional pay records and enter appropriate sequence number and amounts on adjustment voucher.
  • IUHR will save the adjustment voucher. (Do not submit - it will show up on pending).
  • Contact department payroll processor requesting review. Department will add approval in comments section and re-save the adjustment voucher (Do not submit - it will show up on pending).
  • IUHR will send email to UCO Payroll indicating saved adjustment voucher is approved by the department and ready to copy to FC payline.


Payline Activity (UCO Payroll Office):

  • Go to the FC Payline and click the “Copy Details” button to pull in adjustment voucher data. Save the payline. (NOTE: If FC Payline is not created overnight, or the eDoc is saved on the day prior to a payroll close, contact PRHELP if you can’t successfully create the FC Payline.)
  • Review the original and FC Paylines.
    • Verify original payline is NOT OK to Pay.
    • Compare the two and verify no payments, additional pays, or retro adjustment entries were missed on the FC Payline.
    • Review one-time deductions to be sure they are moved to FC Payline.
  • Review any other adjustment voucher paylines and verify they are appropriate and OK to Pay. {Ex: Non-cash fringe adjustment voucher such as Fee Courtesy(FCY)}.


Final Paycheck Review (Campus/IUHR/UCO Payroll):

  • Review the calculated check the following morning after the nightly calc or on clean-up day.
  • If you find any problems, contact UCO Payroll so they can make any corrections on the adjustment voucher and “copy details” to the FC Payline again to pull in the changes.


*How to figure prorated accruals for last working pay period for BW1/BWP Staff:

Accrual rate / 80 x hours in pay status = prorated accrual
Example: 4.31 / 80 x 56 = 3.017 (3.02)

*How to figure partial pay amount for S12/S10 Staff:

For REG pay: Monthly rate / number of work hours in the term month = hourly rate for month
Example: $4335.00 / 168 (Nov, 2020) = $25.80 hourly rate
Hourly rate x work hours = prorated monthly amount

*How to figure Sick Payout for eligible Retirees:

If Sick accruals = 152 through 311 hrs :
(Accrual hrs – 152) x 25% = balance to be paid
Example: 300 – 152 = 149 x 25% = 37.25 hrs

If Sick accruals = 312 and above:
((Accrual hrs – 312) x 50%) + 40 = balance to be paid
Example: 900 – 312 = 588 x 50% = 294 + 40 = 334 hrs

Note: There is an extra eligibility requirement and calculation for those who had vested rights in PERF and are now in 12% retirement plan.