Purpose

To provide instructions for processing Discretionary Lump Sum Payments.

Affected Employees

Active employees in Bargaining Unit 08 with the following Pay Basis Codes:  21P, ANN, BIW, CAL, CYF and CYP

Background

Pursuant to the MOU Side Letter dated 08/05/1998 between UUP, GOER and OSC, certain employees who were part-time during the 1996 academic year may receive Discretionary Lump Sum Payments.

Effective Date(s)

Payments for the Fall semester may be made beginning in Administration Pay Period 18L, paychecks dated 12/28/2016

Payments for the Spring semester may be made beginning in Administration Pay Period 23L, paychecks dated 03/08/2017

Eligibility Criteria

Eligible Employees:

• Employees who were part-time during the 1996 academic year and have since become full-time.
• Employees anticipated to be employed for both the Fall and Spring semesters are due a lump sum payment of $410.66.
• Employees employed for the Fall or Spring semester only are due a lump sum payment of $205.33.
• Eligible employees on Military Stipend Leave are eligible for this lump sum payment immediately.

Ineligible Employees:

• Employees who were full-time during the 1996 academic year and have since become part-time.

Agency Actions

To pay eligible employees who receive the payment for both the Fall and Spring semesters, the agency must submit the following transaction on the Time Entry page using the Earn Code DLP (Discretionary LSP-2 Semesters):

Employees paid DLP dated 12/01/2016 are not eligible for the following DLS payments:

Fall Semester

To pay eligible employees for the Fall semester payment only, the agency must submit the following transaction on the Time Entry page using the Earn Code DLS (Discretionary LSP-1 Semester):

Spring Semester

To pay eligible employees for the Spring semester payment only, the agency must submit the following transaction on the Time Entry page using the Earn Code DLS (Discretionary LSP-1 Semester):

Tax Information

These monies are taxable income, will be included in the employee’s taxable gross and are subject to all employment taxes and income taxes.

The Discretionary Lump Sum Payment (Earnings Codes “DLS” and DLP” is taxable income subject to employment and income taxes and will be taxed using the Supplemental Optional Flat Rate Method.

The monies will be included in the employee's taxable gross and will be reported on the employee's Form W-2.

Payroll Register and Employee’s Paycheck/Advice

The Earn Code DLP or DLS will be displayed on the payroll register. “Discretionary LSP-2 Semesters” or “Discretionary LSP-1 Semester” will be displayed on the employee’s paycheck stub or direct deposit advice.

Questions

Questions regarding this bulletin may be emailed to the Payroll Earnings mailbox.