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Payroll Service Letter 05-14.1: Payments for Cash Awards and Lump Sum Annual Leave

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Payroll Service Letter 05-14.1: Payments for Cash Awards and Lump Sum Annual Leave

Number: PS05-14.1

Date: April 17, 2005 (Revised May, 2009)

Subject: Payments for Cash Awards and Lump Sum Annual Leave

Category: Payments


Reference: PS 05-14, Payments for Cash Awards and Lump Sum Annual Leave, dated April 17, 2005. PS 05-14.1 supersedes PS 05-14. Please replace that letter with this one.

Purpose

This letter is to inform Human Resource Centers of the new payroll process for payment of cash awards and lump sum annual leave.

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Effective April 17, 2005, cash awards and lump sum annual leave payments will be included with biweekly salary payments. The gross amount will display in the Current Earnings section of the Leave and Earning Statement (LES) if the actions are processed in the current pay period. If the actions are processed retroactively they will appear in the Retroactive Earnings block on the LES. The net amount will display in block 21 of the LES. Federal, state and/or local taxes for these payments will be computed separately from the regular pay but shown as one deduction under the respective tax categories if the employee receives regular earnings during the same pay period.

It is important to note that the payroll office will not make special payments for cash awards or lump sum annual leave. Cash awards updated by the end of the pay period will be included with the salary payment for that pay period. Lump sum annual leave payments will be made with the last salary payment if the separation action is processed in a timely manner and updated in the payroll system.

For further assistance or for questions regarding the information in this letter, please contact your Payroll Customer Service Team.