Memos

Vacation Leave Payout and Assessment:

Effective FY2010, the University will be establishing a Vacation Leave Payout Fund to pay for non-retirement vacation leave payouts for eligible faculty and staff.

Assessment:

This new payout fund will be set up similar to the State Leave Payout Fund used for payout of sick leave and vacation leave for retirement eligible terminations.

The University Vacation Leave Payout Fund will be funded by charging an employer/department fringe assessment that will be assessed on all paychecks. The official fringe code will be "VLN" and the expense object code will be "11761-VLN Assessment". This assessment is similar to other fringe assessments of paychecks.

The vacation leave fringe rate for FY2010 is 0.275%. The Vice Provost for Finance will have the responsibility to reevaluate the fringe rate on a periodic basis. This charge will be reflected in the HR/Pay gross and fringe and journals to the financial system.

Payout:

Vacation leave payouts will be processed on a payroll off-cycle, this will be a separate check and will not be included with the regular earnings as in the past.

The goal of the University Vacation Leave Payout Fund is to alleviate the drain on departmental and grant budgets related to unbudgeted vacation leave payouts and improve budgetary efficiency related to these payouts.

A copy of the Vacation Leave Payout policy is available at https://documents.ku.edu/policies/comptroller/Comptroller-Payroll-Vacation_Leave_Payout_Policy.htm

Questions about this new policy should be directed to Katrina Yoakum, Comptroller, at kyoakum@ku.edu.