/pay/,/pay/time-off/,/pay/time-off/vacation/,/pay/time-off/vacation/vacation-time-cash-out/,

/pay/time-off/vacation/vacation-time-cash-out/

20170104

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UWHC,

Benefits,

Pay & Benefits,Time Off,Vacation Time (UWHC)

Vacation Time Cash Out

Vacation Time Cash Out - Pay & Benefits, Time Off, Vacation Time (UWHC)

Focus

Benefit Summary

Per Policy 9.50, UWHC employees are eligible to cash out unused vacation time at the end of the year in which it is earned. In the past, the earnings an employee receives as a result of the cash out have been eligible compensation under the rules put forth by the Wisconsin Retirement System (WRS). This means that the WRS mandatory contributions (6.8% in 2017) have been taken from these earnings. 

As a result of a recent audit, it was determined that these earnings are no longer eligible under WRS rules and the mandatory contributions are not applicable to these earnings. In short, the 6.8% (2017) deduction will no longer be taken from the vacation cash out earnings. 

As a reminder, employees can always elect to make Voluntary Additional Contributions to WRS. In addition, HC employees have access to other supplemental retirement options, such as the Wisconsin Deferred Compensation 457 and Tax Sheltered Annuity 403(b) options.

Cash Out Amount

The amount that can be cashed out is pro-rated based on FTE and vacation accrual years of service as of the end of the calendar year. Employees move into the next category at the beginning of the year listed (i.e., start of 11th year).

UWHC Years of Service

Cash Out Amount

0-10 years

16 hours

11-20 years

40 hours

21+ years

80 hours

How to Cash Out Vacation Time

At the beginning of the new year, Payroll will send an email to employee’s with instructions and a link on how to request a cash out of vacation hours through Employee Self Service (ESS).