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Payroll Coordinator Guide

You can find more information and links to UCPath specific resources through the main Payroll Resources page.
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  • Introduction

    A Damage Payment is a payment made to an employee who begins work prior to signing the University of California State Oath of Allegiance​ and the University of California Patent/IP Acknowledgement forms​ in lieu of regular wages.​​

    A Damage Payment constitutes settlement of a claim by the employee based upon services rendered prior ​to signing the State Oath of Allegiance Form.​

    Non-US citizens are not required to sign the State Oath of Allegiance, so Damage Payments are not relevant.​


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  • Payment Criteria

    The following conditions must be met before a Damage Payment can be processed:


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  • Process

    Obtain employee's signature on the University of California State Oath of Allegiance​ and the University of California Patent/IP Acknowledgement.​​

    Update employee hire information in the UCPath online system, including hire date, Position and Job Data and other information, to ensure the UCPath system data is consistent with the data provided on the Damage Payment Report form. The hire date should be the same date the Oath is signed.​

    Complete the Damage Payment Report and Damage Payment Release​ forms. The Damage Payment Report includes details regarding why the Oath was not signed prior to the commencement of service, the duration of time the employee worked prior to signing the Oath, an approved and detailed calculation of the payment due to the employee for service and an acknowledgment from the employee stating that he or she understands the terms of payment.

    The divisional or departmental business office will submit all forms and supporting documentation together to PAT​ or Academic Timekeepers, as appropriate.

    Damage Payments that are greater than 120 days must be reviewed and approved by the Chancellor.


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  • Authorization and approvals

    This process requires the following reviews and approvals:

    An employee may not approve his or her own reimbursement or payment request.


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  • Resources

    UC Accounting Manual: AM-P196-21: Damage Payments for Services Performed Before Loyalty Oath is Signed

    University of California State Oath of Allegiance​

    University of California Patent/IP Acknowledgement​

    Damage Payment Report

    Damage Payment Release

    Transactional User Guide​


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  • Incorrect Payment Summary

    Incorrect pay is discovered one of four ways:

    1. Payroll Audit of Confirm queries/reports
    2. HR or Divisional audit of time and attendance records
    3. Employee notification
    4. UCPath notification

    Incorrect pay can occur from errors in:

    • Percentage of time on pay status (monthly rated) or hours on pay status (hourly rated)
    • Pay period end date
    • Rate amount
    • Employee ID
    • Time and Attendance
    • Lack of multi-unit coordination
    • Other miscellaneous errors

    For guidance in correcting errors in pay, please contact the Payroll Office staffed through payerr@ucsc.edu.

    Errors in pay that are discovered prior to the confirm for the affected period should be corrected immediately. Contact payerr@ucsc.edu for pre-confirm support when errors are discovered during "closed" periods of the affected cycle.​


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  • Overpayments

    Pay Rate Discrepancies: Overpayments resulting from a pay rate discrepancy require a reclassification of earnings. Please complete the 'Payroll Adjustment Form' and submit a case to UCPath for the reclassification. The form is located in the UCPath 'Transactor Hub' Menu under 'Payroll Forms'. Job Aid: Payroll Adjustment Form.

    If the adjustment results in an overpayment UCPath will automatically process the overpayment.

    Preparing an Overpayment Submission

    Departmental Requirements for Submission: Before submitting an overpayment request to UCSC Central Payroll, the Department must complete the following steps:

    1. Job Data Audit: Ensure the employee's UCPath job data is updated to support the overpayment. If the data is not supported or updated, the request will be returned for correction.
    2. Employee Notification: Notify the employee regarding the overpayment and provide a clear explanation of the UCSC repayment process.

    How to Submit a Request: To initiate an overpayment process, the department must submit two required documents to UCSC Central Payroll at payerr@ucsc.edu. A request cannot be processed until both are received:

    1. Backup for Overpayment (Excel): Complete the calculation template found in the Payroll Forms Directory. Download the form directly by clicking here.
    2. Proof of Employee Notification: You must provide a copy of the actual email sent to the employee (using the template below) informing them of the overpayment.

    Note: Both the Excel backup and the copy of the employee notification email must be sent to UCSC Central Payroll together to request that the overpayment be processed.

    3. Communication Method of Repayments:

    • Employee status is Inactive/LOA/Terminated/SWB - UCpath communicates the repayment packet to the employee’s address on file.
    • Employee Status is Active: UCSC Central Payroll will send the repayment packet electronically via DocuSign.

    4. Inquiries and Support:

    • All questions regarding the overpayment calculations or repayment schedules must be directed to UCPATH or the submitting department.


    Email Submission Guidelines: When submitting the form to UCSC Central Payroll, please use the following format:

    • Subject Line: Overpayment [Employee Last Name] / [EID] / [PPE Date]
      • Example: Overpayment Smith / 12345678 / 4/4/25 PPE
    • Body Content Checklist:
      • Employee ID (EID) and Full Name
      • Pay Cycle / Slices
      • Earn Code
      • Error in Pay (%)
      • Check# overpayment
      • Reason for Overpayment: Provide specific details in the comments section to give UCPath Center the necessary context.
      • Example: "John Smith was overpaid by 12 hours for a pay period ending 4/4/25. The employee should have been paid for 8 hours but received 20."

    Template: Employee Overpayment Notification from Departments

    Subject: Important: Notice of Payroll Overpayment – [Employee Name]

    Dear [Employee Name],

    We are writing to inform you that an overpayment has been identified regarding your compensation for the pay period ending [Date].

    Overview of the Discrepancy:

    • Reason for Overpayment: [Briefly explain, e.g., "Late processing of a leave of absence" or "Incorrect pay rate application"].
    • Gross Overpayment Amount: $[Amount]

    Delivery of Repayment Information: University policy and the UCPath Center require that overpaid funds be recovered. Your official Overpayment Packet will be delivered based on your current employee status:

    • Active Employees: You will receive the packet electronically via DocuSign.
    • LOA / Inactive / Terminated / Separated: The packet will be mailed to your address on file.

    Action Required: Please review the Overpayment packet as soon as it arrives. It will contain a detailed breakdown of the overpayment (Gross vs. Net), your options for repayment (e.g., payroll deduction or personal check), and a specific timeline for responding. 

    Inquiries and Support: All questions regarding the overpayment, calculation results, or repayment schedules must be directed to UCPath or your submitting department.

    Note:  Overpayments not recovered during the tax year in which they occurred may be subject to modification and net-to-gross recalculation.

    Thank you for your understanding and cooperation in resolving this matter.

    Best regards,

    [Your Name/Department Contact] [Department Name]


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  • Cancellation

    Cancellation of paper checks and reversals of ACH deposits are not always an option. As noted above, there are many deductions that ARE NOT reversible. In addition, timing is critical -- there is a very narrow window of time to reverse ACH deposits.

    If the Payroll Office has determined that cancellation is the most appropriate method to handle the overpayment, instruct the HR Representative to complete the Backup for Overpayment form. It is important to use the forms available on our webpage; do not use earlier printed versions that may be in your files.

    • This form is to be used only after consultation with the Payroll Office.
    • Once you have been instructed to do so by the Payroll Office:
    • The Payroll Office will calculate the net overpayment.

     


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  • Underpayment

    An underpayment is an error in reporting normal, scheduled and approved pay resulting in an individual being paid less than the amount they were due.

    Adjustments that are < (less than) 25% of normal pay:

    • Should be paid on the employee's next regularly scheduled pay cycle.
    • HR Representatives have implied approval to adjust pay via amended timesheet or manual file on the next available published pay-cycle.

    Employees should be notified of any underpayment errors and advised when they will receive the payment.

    Adjustments that are > (greater than) 25% of normal pay:

    HR Representatives should notify the employee and include the payroll listserv payerr@ucsc.edu.

    Please include a brief summary of the underpayment (amount, reason, pay period) and the following pay options:

    We can facilitate payment to you by offering you the following options:

    1. Request an Off-cycle check be generated for you.++
    2. Allow pay to be added to the next payroll cycle (this could impact your tax deductions).+++

    ++ Off-Cycle checks are created by requesting them from UCPC. The payment will be issued in accordance to your ongoing method either direct deposit or mailed to your address on file. We cannot guarantee what day you will receive your money via UCPath due to timing constraints.

    +++ Adding pay to your next regular pay cycle means: Your pay is taxed on hours reported/paid each pay cycle, which simply means the more you make in a pay cycle, the more tax is taken out. As always, you are taxed according to your W4 allocation.


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  • Flush Pay

    "Flush Pay" situations are discovered by the Payroll Office in the course of a post-compute audit. Flush pay occurs when there is insufficient current monthly pay and/or no retro-active or additional pay from which to recover a negative transaction. As a result, all pay transactions fail in the compute.  Flush pay will result in no pay being issued to the employee. The Payroll Office will contact HR directly to develop a correction plan for each unique case.

    It is the responsibility of the HR Unit(s) to research transactions and determine the cause of the "flush". If multiple units are involved in paying the employee, the correction must be coordinated between all impacted units.

    Things to consider:

    • Was the reduction in pay in excess of 25% of the intended pay?
    • Will timing of the corrections cause a hardship to the employee?

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  • Zero Net

    "Zero net" is different from flush pay in that the pay transactions DO compute and do NOT need to be reprocessed. A "zero net" check occurs when an employee has set up a voluntary payroll deduction(s) which is in excess of his/her net disposable income (gross pay less mandatory deductions). Depending on the attributes of the deduction, it may have taken all available net pay, and may or may not result in the remaining balance of the deduction being held in suspense until future pay is available to draw against.

    Example

    403(b) deduction greater than gross disposable:

    • Employee normally has a gross of $3,200 and a net of $2516
    • Employee sets up a 403(b) deduction through UCPath/Fidelity for $300/month and accidentally adds an extra zero, resulting in a deduction of $3000/month.
    • At compute, the 403(b) will deduct all that it can (after reducing taxable grosses) which, in this case, will be in excess of the net disposable income. This will leave the employee with a "zero net" check.

    There is no adjustment to be made to the gross pay. The employee's unit paid the gross that should have been paid. The zero net occurred due to a deduction amount error.


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  • Permanent Interlocation Transfers

    When an employee transfers without a break in service, for one (1) year or more, from one UC campus to another, the action is termed an Interlocation Transfer.

    OUTGOING interlocation transfers are employees transferring from the Santa Cruz campus to another location.

    INCOMING interlocation transfers are employees transferring to the Santa Cruz campus from another location.

    Before Process Begins

    • The employee has notified SHR or their academic division of their transfer and there is no break in service.
    • During the job offer process and termination process, SHR and Academic Divisions will proactively ask if an employee is planning on transferring to another campus or is originally from another campus.
    • SHR and Academic Divisions will coordinate directly with other locations regarding specific transfer information such as transfer dates, probation status considerations, etc.

    Incoming Transfers

    • A position exists in UCPath and recruitment activities (if applicable) have occurred.
    • Incoming transfers will complete paperwork as applicable (with the exception of the I-9 and oath). Incoming transfers are not eligible for a new PIE.

    Outgoing Transfers

    • For outgoing transfers, final pay will be processed on the employees’ regular pay cycle and will not be submitted through SC.PY.03 Final Pay.
    • If an employee is transferring from an accruing position to a non-accruing position, the timekeeper will process any compensatory time (CTO) payout through SC.TA.01 Time & Attendance Processing or vacation payout through SC.PY.03 Final Pay.
    • All overpayments are handled prior to the transfer of the employee. UCSC is responsible for negotiating a repayment schedule, this will be addressed in SC.PY.06 Overpayment Recovery.

    To help ensure that elected deductions are transferred properly, please notify the Payroll office via the payerr@ucsc.edu listserv of all transfers, both to and from UCSC.

    ​
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  • Temporary Appointments (MLA) and One Time Payments

    Multilocation Appointments (MLA): An interlocation transfer is considered temporary when an employee at one location, designated the HOME location, accepts a position at another location, the HOST location, for a period of twelve months or less, with the intention of returning to work for the HOME location at the end of this period.

    One Time Payment (OTP): A one-time intercampus payment is required when an employee at one location (home location) is eligible to receive a payment originating from another location (host location) for an event or service of a short duration. A one-time payment is paid from the Home location.

    Job details for both the MLA and OTP must be approved by both HOME and HOST locations before payment can be submitted.

    UCSC is HOME: a UCSC employee accepts a temporary assignment at another UC location

    UCSC as Home Navigating Interloaction Appointments and Payments diagram

    UCSC is HOST: an employee from another location accepts a temporary assignment at UCSC

    UCSC as Host Managing Interlocation Appointments and Payments diagram

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  • Campus business policy references

    Payroll: Interlocation Transfers and Appointments

    Initiate Interlocation Transfer (Terminate) Template Transaction

    Initiate Interlocation Transfer (Concurrent Hire) Template Transaction

    Job Aid: Interlocation One-Time Additional Pay

    ​​
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  • Summary

    Summary

    The Employee-Initiated Reduction in Time (ERIT) Program is a tool that department heads, with the approval of their Principal Officer, may offer to their employees to achieve temporary salary savings. As of July 1, 2017, the ERIT program was extended indefinitely and allows employees a maximum participation of 36 months effective with the last renewal on July 1, 2017.

    ​
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  • Eligibility

    Eligibility

    All career staff employees (regular status and probationary, except Senior Management Group members), with appointments of at least 55 percent time, are eligible to participate in the ERIT Program.

    The following represented employee groups are eligible for participation:

    • Clerical and Allied Services (CX)
    • UAPD (DX)
    • Patient Care Technical (EX)
    • Skilled Craft (K7)
    • Nurses (NX)
    • Service Employees (SX)
    • Technical Employees (TX)
    • Research Support Professionals (RX)
    • Residual Health Care Professionals (HX)

    For all other exclusively represented employees, participation in the ERIT Program is subject to collective bargaining.​


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  • Process Overview

    Process Overview

    Department Heads, with the approval of their Principal Officers, may approve an employee’s participation in the ERIT Program. Employee participation is subject to departmental and supervisor approval

    Monthly Paid Employees

    For monthly paid employees requesting participation in the ERIT Program, a completed and approved ERIT Program contract form must be received by the ERIT Administration group no later than the last working day of the month prior to the effective date. The ERIT Coordinator will review applications and update in UCPath.

    An ERIT Program contract for monthly paid employees must begin on the first day of a month and end on the last day of a month. No requests that require retroactive payroll processing can be considered. If contract forms are received after these published processing deadlines, the ERIT Program effective date will be modified to the following pay period. Departments should develop internal processes to ensure sufficient time for review and approvals.

    Biweekly Paid Employees

    For biweekly paid employees requesting participation in the ERIT Program, a completed and approved ERIT Program contract form must be received by the ERIT Administration group at least five (5) working days in advance of the effective date. The ERIT Coordinator will review applications and update in UCPath.

    Time reductions are to be made in two (2) biweekly increments therefore an ERIT Program contract for biweekly paid employees must begin on the first day of the biweekly pay period and end on the last day of the second biweekly pay period of the quadriweekly pay cycle. Reference the UCSC Biweekly Payroll Calendar.

    No requests that require retroactive payroll processing can be considered. If contract forms are received after these published processing deadlines, the ERIT Program effective date will be modified to the following biweekly pay period or quadriweekly pay cycle. Departments should develop internal processes to ensure sufficient time for review and approvals.​

    ​
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  • Additional Resources

    Additional Resources

    ​

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  • Before you start

    The information in this guide provides payroll policy and procedures to follow when an employee is separating from University employment.

    • A separation action occurs when an employee separates from University employment.
    • The separation process is determined by the type of employee who is separating.
    • When an employee is discharged or resigns, the separating employee is paid for time worked and accrued vacation.

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  • Policy and Background

    There are two types of separation: voluntary and involuntary.

    A voluntary separation from employment is:

    • retirement
    • the end of a limited-contract appointment, in which the end date of employment is established during the initial hire action.
    • employee elected separation, with notice.

    An involuntary separation from employment can be, but is not limited to, the following:

    • Employee resigns/quits without notice (less than 72 hours)
    • Employee is discharged

    When an unrepresented employee voluntarily separates from employment, the employee's final pay will be processed in the employee's next available regularly scheduled payroll cycle.

    Represented employees that voluntarily separate from employment will be reviewed on a case-by-case basis and will be paid in accordance with mandates set forth in each union contract, giving due consideration to payroll deadlines and policy.

    Involuntary separations will be addressed as set forth in the California Labor Code Assembly Bill 2410: final pay for separating employees is due and payable immediately and is subject to the 72-hour rule when separation is involuntary.


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  • Categories of Separating Employees

    The final pay policy to pay final wages/hours on the employee's regular payroll cycle applies to unrepresented employees who voluntarily separate from University employment and includes:

    • Employees who quit career positions to accept per diem positions.
    • Employees who resign prior to their appointment end date (early resignations).
    • Employees who are retiring.
    • Employees whose contract has expired.

    The final pay policy to pay via Off-Cycle Pay processing applies to represented employees with contracts that define the terms of separation pay and employees who involuntarily* separate from University employment, including:

    • Dismissals
    • Layoffs
    • Employees who are receiving settlement or severance payments (*can be voluntary or involuntary).

    The final pay policy does not apply to employees who are transferring to other UC campus locations without a break in service. Please refer to the Interlocation Transfer Guide for more information about employees who are transferring to other UC locations.

    The final pay policy does not apply to expiring Academic or Student appointments, including appointees who leave campus prior to their appointment end date.

    The final pay policy does not apply to payments made upon death of a University employee. Refer to the Accounting Manual P-196-25 Payroll: Employee Death Payments for more information about the policy and procedures relating to payments made upon the death of a University employee.


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  • Employees Separating from UC with Repayment Terms

    Some employees are awarded incentives such as Faculty Recruitment Allowances, Moving Expenses and Recruitment bonuses. Many of these incentives include a repayment agreement stipulating repayment of some, or all, of the incentive if the terms of the agreement are not met.

    When an employee is awarded an incentive payment, please notify the Payroll Office at payerr@ucsc.edu. The email notification should include:

    • Employee Name
    • UCPath ID
    • Award type and amount
    • Date of payment
    • The signed repayment agreement (if applicable)

    Similarly, when an employee is separating, please notify the Payroll Office at finalpay@ucsc.edu. The email notification should include:

    • Employee Name:
    • EMPL ID:
    • EMPL Rec:
    • Last Day of Employment:
    • Separation Reason:
    • Pay Due (Yes or No):
    • Terminal Vacation (TRM - Yes or No):
    • Termination TX#:

    This notification will trigger a Payroll review of repayable amounts that may be owed back to UCSC, including any outstanding overpayments. The Payroll Office will respond within 4 hours to provide instructions on any outstanding balances owed. This reply will include the amount due, employee communications/agreements needed and instructions for collecting balances due from final pay, when appropriate. The Payroll Office will work directly with the employee to obtain authorization to recover balances due from final pay and advise HR on the recovery method and amount. Please do not process final pay to the employee prior to receiving a response from the Payroll Office.

    Employees who do not agree to have balances due collected from final pay and/or those who do not have sufficient final pay to collect the entire balance due, will be required to submit payment to the UC Regents within 30 days of separation from UC.

    ​​​​​
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  • Consequences for Non-Compliance

    The University is at risk if the employee’s UCPath record is not updated to reflect separation prior to the release of final payment checks. The University and the Payroll Office personnel are at risk for fines and penalties when the Payroll Office is not given sufficient time to respond to requests for final payment.

    • The HR Service Team communicates with employees about grievances and directs the employee to contact the Labor Board. The HR Service team notifies the Payroll Office by email about separation payment grievances.
    • Daily penalties may be assessed and include weekends and holidays for up to a maximum of 30 days wages.
    • Penalty payments are considered tax reportable income and are not subject to typical employment taxes (Federal and/or State withholding, etc).
    ​
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  • Special Situations

    There are instances when current month pay should be adjusted.  Contact the Payroll Office for guidance.

    • The Payroll Office consults with the Compensation Office for all retroactive wage implementations to ensure compliance with the mandates set forth in the California Labor Code and CA Assembly Bill 2410.
    • Contact the Payroll Office when an employee is discharged or quits during a time when retroactive wages are to be paid.
    • The University is obligated to comply with provisions of CA Assembly Bill 2410 when a separating employee does not provide their timesheet or does not respond to requests for information needed to process final payment.
    • Payment is for all wages known at the time of separation. The HR Service Team should use conservative estimates when final hours cannot be verified. Every effort must be made to pay an employee who quits without notice all unpaid wages within the 72-hours period. Any additional earnings are processed as additional pay adjustments through a regularly scheduled payroll compute.
    • When an employee is dismissed at the end of an investigatory leave, the HR Service Team consults with the Labor Relations Office to determine the most appropriate method to disperse final payment to the employee.
    • It is the responsibility of the HR Service Team to receive a request in writing when an employee requests that final payment be mailed to him/her.

    The California Labor Code includes a provision for separation payment requirements for the month of December. Consult with the Payroll Office regarding final pay processing for separations that occur on or near the campus closure dates.

    If an employee is losing employment and the payment date falls on a date when the employer is closed (Saturday, Sunday or a holiday), the final payment is to be dispersed on the next business day.

    Employees separating during the campus closure will be paid all pay due on the December monthly payroll cycle, issued the first business day of the new year. Be sure to submit the AB2410 Form to the Payroll Office as soon as the separation is known during the month of December to insure that payment can be processed before campus closure.


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  • Resources

    The policies that apply to this campus business procedure include:

    The method for processing separation actions is determined according to individual employee reason, circumstance, and timing.

    ​
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  • Termination Benefits

    In general, termination benefits may be provided to an employee as a result of voluntary or involuntary early termination of services. Termination benefits are those that are over and above standard benefits (i.e., vacation pay, health care coverage, etc.) provided upon termination that are not provided by UCRP or the annuitant health plan.  The following are examples of termination benefits:

    • Health care coverage continuation
    • Expanded health care coverage
    • Expanded health care coverage not provided by UCRP annuitants
    • COBRA benefits paid by UCSC
    • Severance pay
    • Cash pay outs at, or following, termination, including annuity payments
    • Career counseling or job placement
    • Other payments such as moving expenses, attorneys' fees, damages and interest on back pay.

    Some of the benefits listed above exceed those provided under University policy and need to be approved as an exception or included in a settlement agreement approved by the Office of General Counsel.


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  • Voluntary Termination Benefits

    Voluntary Termination Benefits represent payments made to employees as:

    • an inducement to hasten the termination of services or
    • as a result of a voluntary early termination plan.

    The University's obligation to provide benefits for voluntary terminations or separations typically arises as a result of a bilateral agreement in which the University agrees to provide benefits in exchange for which the employee agrees to leave service earlier than he or she otherwise would.

    Earn Code Description Usage
    VTL Voluntary Termination Lump Sum By-Agreement Settlement Payments, job placements, etc
    VTS Voluntary Termination Severance By-Agreement Severance
    VTR Voluntary Termination Regular Pay Regular Pay in monthly increments
    ​
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  • Involuntary Termination Benefits

    Involuntary Termination Benefits represents payments made to employees as a consequence of the involuntary termination of services. In contrast to voluntary terminations or separations, involuntary terminations result from a unilateral decision by the University, such as layoff. The conditions for involuntary terminations are outlined in personnel policy, which provides the basis for conveying these types of benefits to employees.

    For Involuntary Termination Benefits all of the following criteria must be met:

    • A plan of termination has been approved by those with the authority to commit the University to the plan
    • The plan has been communicated to the employee
    • Benefits can be estimated
    Earn Code Description Usage
    ITL Involuntary Termination Lump Sum By-Agreement Settlement Payments, job placements, etc.
    ITS Involuntary Termination Severance By-Agreement Severance
    ITR Involuntary Termination Regular Pay Regular pay in monthly increments
    ITP Involuntary Termination Pay-in-Lieu Regular pay in monthly increments in-lieu of notice
    ​
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  • Payments Outside of UCPath

    For non-salary termination payments made throughout the year outside of the UCPath system (ie, through the AP office), the following object codes should be used to record the payments:

    • Termination Benefits -- Voluntary: Object Code 8770
    • Termination Benefits -- Involuntary: Object Code 8875
    ​
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  • Required Backup

    For all payments involving termination benefits, we require backup sufficient to properly classify the payment, calculate net pay and apply appropriate benefits, deductions, etc. as agreed upon between both parties.

    In addition:

    For voluntary termination Earn codes (VTL, VTS, VTR) we are required to substantiate:

    • The employee accepts the offer, and
    • The amount of the liability can be estimated

    For payments made on voluntary Earn codes, separating unit must send Payroll the agreements as backup for all payments over 20K

    For involuntary termination Earn codes (ITL, ITS, ITR, ITP) we are required to substantiate:

    • A plan of termination has been approved by those with the authority to commit the University to the plan, and
    • That plan has been communicated to the employee, and
    • The amounts can be estimated.
    ​​
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  • Resources

    These policies apply to campus business processes:


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  • Pay Cycle Conversion
    Effective Date: When an employee transitions from one pay cycle to the other, the effective date of the new pay cycle needs to align with the start of the quadriweekly benefits billing cycle.
    • Example: “Benefits Holiday” Twice a year, the “Benefits Holiday” provides a range of dates in which a biweekly employee can be transitioned to the monthly pay cycle.
      • A biweekly employee transitioning in the month of April 2020 can start in the monthly pay cycle effective 4/5/20 or 4/19/20.
      • A monthly employee transitioning to biweekly in the month of April should have a start date of 4/19/20.
    • Example: An employee transitioning in the month of May 2020 should start in the new pay cycle effective 5/17/20. This ensures that benefits collection for both pay cycles is complete for the month of May and the employee will start out a new month of benefit billing in their new pay cycle.
    • Example: An employee transitioning in the month of June 2020 should start in the new pay cycle effective of 6/14/20.

    System Update: To prevent missed pay resulting from “Top of Stack” issues in the UCPath system, updates to Job Data should be made after time has been confirmed in UCPath for the employee’s final pay in the “old” pay cycle. Please notify payerr@ucsc.edu of this action so that edits can be made to assign the correct new pay cycle to the employee’s local/general deductions.

    • Example: April 2020:
      • Monthly start date of 4/5/20: update Job 4/9/20-4/17/20 3pm. The employee’s first monthly payday will be 5/1/20 – no benefits should be collected.
      • Monthly start date of 4/19/20: update Job 4/23/20 4/27/20-5/1/20 3pm. The employees first monthly pay day will be 6/1/20 – loaded retro should generate for 4/19/20-4/30/20.
      • Biweekly start date of 4/19/20: update Job 4/27/20-5/1/20 3pm. The employee’s first biweekly payday will be 5/27/20.

    Please contact the Payroll Office at payerr@ucsc.edu if you need assistance in determining a transition date or action plan for your pay cycle conversion case.


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  • Damage Payments FAQs

    Q) Do the daily penalties include weekends and holidays?

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

    Q) Are penalty payments considered taxable wages? Are they considered covered compensation for UCRP?

    • A) Penalty payments are considered tax reportable income but are not subject to normal employment taxes (Federal & State withholding, Social Security, etc.). Therefore, penalty payments must be processed through Accounts Payable and tax reported on Form 1099. Penalty payments must not be processed through Payroll.

    Q) If a department incurs penalties, can the penalty payment be charged to contract and grant funds or State funds?

    • A) No. Penalty payments can not be charged to contract or grant funds or to State General Funds.

    Q) Are penalty payments considered covered compensation for UCRP?

    • A) Penalty payments must be processed through Accounts Payable and are tax reported on Form 1099.

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  • Incorrect Payments FAQs

    Q) When will the department expenditures account be credited?

    • A) The campus does not have authority to write off or forgive salary overpayment until all efforts to collect the debt have been exhausted.

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  • Separation from employment FAQs

    Q) If an employee has two appointments and only one appointment ends, does the procedure apply to the terminating employment?

    • A) No, when an employee holds two appointments at the same location and only one appointment ends, then the employee has not separated from the University.

    Q) Can a department extend an employee's appointment in order to obtain additional time to submit final hours worked?

    • A) No, a department should not change an appointment end date as a method of obtaining additional time to pay the employee.

    Q) Does California Assembly Bill 2410 apply to distributions of retirement funds?

    • A) No, California Assembly Bill 2410 only applies to wages, not to retirement funds.

    Q) Are employees working out-of-state- covered by this policy?

    • A) Yes, the policy applies to all University employees working out-of-state, including employees of the Los Alamos National Laboratory.

    Q) How does the law related to retroactive wages resulting from a collective bargaining agreement?

    • A) Determination is made on a case by case basis. Contact the Payroll Office when an employee is discharged or quits during a time when retroactive wages are to be paid.

    Q) Are employees that work out-of-state covered by California Assembly Bill 2410?

    • A) Yes, all University employees working out-of-state, including employees of the Los Alamos National Laboratory, are subject to the provisions of the Bill.

    Q) Does the AB2410 procedure apply to employees who terminate with the intention of being rehired within a few days? For example, career employees who are accepting per diem appointments are required to have at least a one-day break in service before being rehired.

    • A) Yes, if the termination is involuntary or otherwised covered in Termination Benefits. Employees who voluntarily quit their career positions to accept per diem positions are paid via the Payroll compute.

    Q) Does the AB2410 procedure apply to employees who have appointment end dates but who resign earlier?

    • A) Employees who resign before achieving their appointment end dates are paid via the Payroll compute. The definition of a voluntary quit includes early resignations.

    Q) Does California Assembly Bill 2410 apply to Inter-location Transfers?

    • A) No, employees who transfer from one campus to another without a break in service are not considered separating from University Service.

    Q) If an employee has two appointments and only one appointment ends, does the law apply to the terminating appointment?

    • A) No, an employee is only considered to be separating from employment when he/she has no active appointments.

    Q) If an employee retires from the University, does that represent a voluntary separation?

    • A) Yes, retirements are voluntary separations and all wages due are paid via the Payroll compute.

    Q) When a separating employee does not provide his or her timesheet or does not respond to requests for information needed to produce and deliver his/her final paycheck, is the University still obligated to comply with the payment provisions contained in the law?

    • A) Yes, departments must make every effort to pay an employee all unpaid wages. When the wages owed are in dispute or unknown, departments should pay all wages that are known to be due the employee. If the dispute can be resolved or when the hours can be determined, the department should pay the amount settled upon. If the dispute can not be resolved or the employee does not provide the necessary documentation, the department will have a reasonable defense if the employee seeks remedies over the disputed amount through the Labor Commissioner.

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  • Wages FAQs

    Q) Does the law apply to terminal vacation pay?

    • A) Yes, the code applies to ALL wages for labor performed.

    Q) Does the law apply to distributions of retirement funds?

    • A) No, the Code applies only to wages, not retirement funds.

    Q) Does the law apply to Senior Manager severance pay and other severance payments?

    • A) Yes, Senior Management and other forms of severance pay are considered wages and must be included in the employee's final payment.

    Q) Is the University obligated to process mandatory and voluntary deductions since the employee will not be paid on his /her primary pay cycle?

    • A) Yes, the employee is entitled to his/her normal deductions. Consequently, the Payroll Office will manually withhold mandatory and voluntary deductions.

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