As a matter of policy, the new rules will apply to all University employees working out-of-state, including employees of the Los Alamos National Laboratory.

The University can reduce an employee's final pay by an outstanding overpayment depending upon the amount of the overpayment and provided that the employee agrees in writing to the repayment. Accounting Manual Chapter R-212-2, Receivables Management, contains additional information on the recovery of payroll overpayments.

Payments of penalties should not be charged to contract or grant funds or to State General Funds. Questions regarding the timing and payment of penalties should be referred to the UCOP Payroll Coordination and Tax Services unit.

Penalties paid to an employee are reportable as income on a Form 1099. Such payments, however, are not considered wages for Federal and State income and employment tax withholding. These payments are not covered compensation for purposes of UCRP.

Yes. The daily penalties include weekends and holidays for up to a maximum of 30 days pay.

If an employee is discharged or quits at a time when he or she is entitled to such increases, and the formula for the increases is known, then the employee should receive all monies due at the time of discharge or quit, as appropriate.

A department should not ask an employee to sign a release. It would be a good practice, however, to have the employee sign for his or her final paycheck as part of the check pick-up procedures.

When the pay date is scheduled before the appointment end date because of a conflict with a holiday or weekend, it is permissible to use Surepay for employees with such appointment end dates. For example, a monthly-paid employee enrolled in Surepay has an appointment end date of June 30, 2001. The employee will receive pay for the month of June on June 29 because the normal pay date (i.e., July 1) falls on Sunday, a non-working day.

It does not appear that the use of Surepay will satisfy the Code. Section 213(d) provides: “If an employer discharges an employee or the employee quits [a] voluntary authorization for deposit shall be deemed terminated” and the employee must be paid according to “this article relating to the payment of wages.” A discharged employee must be paid immediately, which contemplates in person.

The letter of dismissal should explain that the employee may call to make an appointment to pick up his or her final check on the dismissal date or the employee may request the check to be mailed. A second approach would be for the department to mail the check with the dismissal letter if the department does not want the employee to return to the work site.


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