NYS Comptroller Seal  

Bureau of State Payroll Services

Date:  November 5, 2001

 Bulletin No.  280


Subject Vacation Exchange Payment
Purpose To provide the agency with information and procedures regarding the processing of Vacation Exchange payments
Eligible Employees Management/Confidential employees in Bargaining Units 06, 13, 18, 40, 46, 52, 66, 96, and also those employees in Bargaining Unit 79 whose agency has elected to participate in the Vacation Exchange Program.

Officers and employees whose salaries are prescribed by Section 169 of the Executive Law or whose salaries were prescribed prior to the enactment of Chapter 55 of the laws of 1979 are ineligible for the payment.
Effective
Date(s)
Vacation Exchange payments will be made in a separate check dated November 29, 2001 for employees in Institution agencies and December 5, 2001 for employees in Administration agencies.
Specifics Chapter 74 of Laws of 2000 provides for a cash payment for employees in any of the above named bargaining units who earn and accumulate vacation credits and elect to exchange such credits in units of full days up to a maximum of 5 days, provided that at the time of such election the credits total 35 days or more. The election of the vacation exchange must have been made by the last day of the payroll period in which July 1, 2001 fell (7/4/01 for Administration agencies and 7/11/01 for Institution agencies).

Eligible employees who were part-time during the filing period and had the appropriate number of pro-rated vacation credits may have requested to exchange a pro-rated number of vacation credits, based on the percentage of time worked, in exchange for a Vacation Exchange lump sum payment. Example: An employee who was 50% during the filing period who had at least 17 days of vacation credits may have requested a maximum of 2.5 full days of Vacation Exchange.

Eligible employees who were on Voluntary Reduction at the time the request was filed are eligible for a maximum of 5 full days of Vacation Exchange.

The Vacation Exchange payment is calculated based on the salary (including additional salary factors) in effect on 10/1/01 provided the employee is active on the payroll (including employees who are on a paid leave of absence) and in an M/C Bargaining Unit on 10/1/01.

If the eligible employee is inactive, on a leave without pay, or in a Bargaining Unit that is other than M/C on 10/1/01, the Vacation Exchange payment is calculated based on the salary (including additional salary factors) in effect on the last day prior to 10/1/01 that the employee was last paid from an M/C position.

The agency must use the following procedures when reporting the Vacation Exchange earn codes:

VEX Vacation Exchange: This code is used to pay salaried employees.
Earn Begin Date: For employees that are active on the payroll in an M/C position on 10/1/01, enter 10/1/01. For employees who on 10/1/01 are inactive, on leave without pay, or in a Bargaining Unit other than M/C, enter the date in which the employee was last paid from an M/C position that is prior to 10/1/01
Earn End Date: Enter the same date as the Earn Begin Date.
Days: Enter the number of days of Vacation Exchange.

The system will automatically calculate the amount of the Vacation Exchange payment using the salary and additional salary factors in effect on the date entered in the Earn Begin Date field.

VXO Vacation Exchange Override: This code is used to pay hourly employees or daily employees paid as FEE.

Earn Begin Date: For employees that are active on the payroll in an M/C position on 10/1/01, enter 10/1/01. For employees who on 10/1/01 are inactive, on leave without pay, or in a Bargaining Unit other than M/C, enter the date in which the employee was last paid from an M/C position that is prior to 10/1/01
Earn End Date: Enter the same date as the Earn Begin Date.
Days: Enter the number of days of Vacation Exchange.
Amount: Enter the total amount of the Vacation Exchange payment.
Separate Check The Vacation Exchange payment is taxable, but non-pensionable, and will be made in a separate check, regardless of whether the earnings is submitted timely or at a later date.

There is no direct deposit for this payment.

If an employee's existing tax record in PaySR reflects an additional tax amount, the additional amount will be withheld from both the regular check and the Vacation Exchange check. In order to avoid an over-withholding of tax in the payroll period the Vacation Exchange payment is processed, agencies may want to review the tax panels of active and inactive M/C employees to determine if an additional tax amount currently on the record requires follow-up action.

The earn code VEX or VXO will appear on the payroll register. The earn code description Vacation Exchange or Vacation Exchange Override will appear on the employee's check stub.
Questions Questions regarding this payment may be directed to the payroll auditor.