Chapter 5: Special Conditions
School District and Educational Service District Pay Adjustments
Pay in Lieu of Vacation
Some school districts negotiate additional compensation for staff that can't accumulate and use vacation leave. Sometimes it is labeled "vacation payout", but it isn't a payment for unused accumulated vacation leave; it is a term used in place of "bonus pay". This payment has no additional service associated with it.
The payment is reportable for all systems and plans and the coding of the payment will depend on the following:
- If paid out equally
- Full-time and part-time - report evenly over the working months of the school year associated with the pay using Status Code A.
- If paid in a lump sum at the end of the school year
- Full-time and part-time - Report with Status Code M in the month it was paid.
- If paid in July or August, report a lump sum payment in the last month of work for the employee, usually June.
Refer to Contribution Rate Changes and Using Status Code A or M for additional restrictions that may apply.
