OSPS E-News ~ New Vacation Payout Limits - Pay Codes

[Announcements from OSPS to the users of the Oregon State Payroll Application]

Payroll Professionals,

Some recently settled Collective Bargaining Agreements have increased the number of hours allowed for payouts of accrued vacation leave, from 250, to 300 hours.  This change has not been adopted by EVERY contract. Listed below are the vacation payout codes and their proper use.

There are three codes that may be used when paying out accrued vacation. Each have limits regarding the number of hours that can be paid out and each should be used in specific order depending on the number of hours being paid out.


*         VAP     VAC PAYOFF   Payoff of accrued vacation time upon termination or per specific contract language. Paid at the equivalent hourly rate. 250 maximum payoff hours allowed. Use VAP prior to using VAQ or VAL.



*         VAQ     VA PAY ADD'L Used in conjunction with VAP to pay vacation hours above 250 when allowed per CBA or agency policy for Lottery, Judicial, Legislative Branch, Firefighter, and AEE benefit packages. 100 maximum payoff hours allowed. Use VAQ prior to VAL, but after VAP.


*         VAL      VA PAY EXTRA Payoff of accrued vacation time for firefighters at termination or per specific contract language. Paid at the equivalent hourly rate. 274 maximum payoff hours allowed. Use VAP and VAQ prior to using VAL.


One important note.  DO NOT use pay type code VAM to pay out accrued vacation leave.  VAM is a specific code used when an employee chooses to donate leave to the Military Donated Leave Program.  It is entered with a corresponding P070 MMNN deduction for zero tax and income affect.  Payouts using VAM do not have income tax withheld and will result in a net pay negative for the employee when the error is corrected.



If you have further questions regarding these codes, please contact the OSPS help desk for assistance.

Thanks,

Seth Lewis
Senior System Analyst
DAS/EGS/FBS/Oregon Statewide Payroll Services
503.373.0259 - direct
503.378.3518 - fax
seth.lewis at oregon.gov<mailto:seth.lewis at oregon.gov>
Visit Our Online Resource Center:  State of Oregon: Oregon Statewide Payroll Services<http://www.oregon.gov/DAS/EGS/FBS/OSPS/Pages/index.aspx>

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