Judy Duff Payroll Manager Ext

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2 Judy Duff Payroll Manager Ext

3 Furlough Pay Processing Instructions on Banner Guide at:

4 The mandatory unpaid leave salary reductions will begin in October. The salary reductions will be calculated and processed centrally.

5 Will require early closure of the time entry window. Departments will be expected to complete data entry prior to 3 pm on the last day of the three-day window.

6 Default Option: reduces employee pay equally each month in each fiscal year unless otherwise specifically requested by the employee. Opt-Out Option: reduces employee pay as leave is taken.

7 With the default option (or equal salary reduction), there is no correlation between pay and actual leave taken. Overpayments and underpayments may result. Final pay calculations will require a review to determine pay received vs. furlough days taken.

8 All requests for furlough leave should be in writing. Departments may follow current leave request procedures requests via or by leave request form

9 A new form, Mandatory Unpaid Leave Program Election Sheet, is available on the HR website. The form must be submitted to HR by Monday, October 19. Original to supervisor, and copy to Joan Walker. Payroll Coordinators must also be informed of employees who opt-out.

10 We are creating two furlough leave categories: one for each fiscal year. This will make it easier for employees and managers to track usage by June 30 th each year.

11 2009 Tax Status YTD Month 10 M 2 31,006 ID : 951XXXXX M 2 31,006 Summary Gross Pay Deductions Net Pay Mary Jones 411 Elm Street Eugene, Oregon Earnings Regular Earnings , SEIU Furlough Net Pay Distribution (Direct Deposit or Check) Leave T A Bal Furlough Sick (Taken, Accrued, Balance)

12 FY 1 (October 2009 June 2010) FY 2 (July 2010 June 2011) Academic year employees will have salary reduced over an 9 month period each fiscal year. (October - June)

13 New Earn Codes LW7 New Leave Code Comment Reduces Pay LTZ XFUR Fiscal Year 1

14 Departments will enter the LTZ Earn Code during time entry. The Payroll Office will upload the LW7 earn code (which docks pay, but preserves leave balances and benefits.)

15 Departments will enter the earn code, LTZ, when employees take furlough leave hours. The Payroll Office will upload the "averaged" salary reduction earn code each month.

16 Departments will be asked to send a spreadsheet to the Payroll Office listing the number of furlough hours taken so that salary may be reduced. Salary may be reduced and leave taken may be reported on a one-month lag, or leave may be reported and salary reduced in the month when the leave is actually taken.

17 This choice is left to the discretion of individual departments. Often payroll coordinators are not informed of leave taken by employees until time sheets are submitted at monthend.

18 Departments will need to proceed with caution when processing pay for hourly employees, who have chosen the default option. Furlough hours taken must be included in regular hours, similar to holiday pay, and then recorded as leave taken by the earn code, LTZ.

19 This is the easiest of all four options from a pay processing standpoint. Departments will enter actual hours worked using the earn code REG and the earn code LTZ when furlough days are taken. There is no need to contact the Payroll Office, since there is no need to reduce pay.

20 Yes, by choosing the opt-out option, an individual has more control over the amount of earnings in a calendar year. For example: If an employee opts-out and doesn t take furlough days till January 2010, the W-2 earnings for 2009 will be higher than if the employee had chosen the default option, with salary reduced Oct Dec. If an employee opts-out and takes furlough days by year-end (and the reduction is taken in the December paycheck), then the W-2 earning for 2009 will be lower.

21 That depends on the individual tax situation and the timing of earnings, so taxes may be lower or higher in different years. With the Opt-Option, an employee could, for example, have salary reductions in tax year 2009, and none in (Or reductions in 2010 and 2011, and none in 2009)

22 Furlough leave balances may be viewed on Banner forms PEALEAV and PEILHIS beginning Monday, October 19 th. The following reports and form revisions are currently being updated with the new furlough leave categories by Information Services: Revised Time Sheet on PWIPAYR Revised Leave Report on PWIPAYR Revised Leave History Report on PWIORPT Revised Leave Balance Report on DuckWeb

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