Layoff Final Pay Processing Frequently Asked Questions


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OVERVIEW

Frequently asked questions for Layoff Final Pay Processing in UCPath

  1. Can locations process mass terminations for these layoffs?
    1. No, UCPath cannot process mass job record terminations at this time.
  2. When will final paychecks be issued?
    1. All final paychecks will be processed through off-cycle payroll runs.
    2. Pay issue dates will be aligned with the employee’s termination date.
  3. What will be included in the final pay?
    1. Hours worked for the current pay period or month.
    2. Vacation or PTO takes reported.
    3. Accrual (TRM) payouts.
    4. Severance Pay – if applicable.
  4. What deductions will be applied to final pay?
    1. Eligible union dues.
    2. Applicable benefit deductions or arrears.
    3. Eligible wage garnishments.
    4. Voluntary Percentage-Based Savings Plan Deductions
      1. Applies to 403(b) and 457 plans only
    5. Changes to savings plan elections
      1. Any updates must follow the same Retirement Savings Contribution change schedule.
      2. Refer to the Retirement Contribution Change Calendar for applicable deadlines and processing windows.
    6. Deductions from Severance -
      1. 403(b) and 457 percentage-based elections will be applied to severance payments.
  5. If an employee is terminated and scheduled to receive severance 30-60 days after their termination date, will the 403(b) and 457 deductions be withheld?
    1. No, 403(b) and 457 elections end on the first of the month following the employee’s termination date. For example, if the employee’s termination date is July 25, their 403(b) and 457 elections will end effective August 1. As a result, any severance payments issued after that date would not have 403(b) or 457 contributions withheld.
  6. How should you report final hours for less than 10 employees?
    1. Submit an E-078 for final pay request for less than 10 employees.
  7. How should you report final pay for 10 or more employees?
    1. Report final hours using the I-181 form. Please see I-181 job aid for more details.
  8. Can locations enter admin leave or pay in lieu of notice hours in lump sum format on the I-181 file?
    1. No, the I-181 does not currently support the entry of leave hours in lump sumformat. These hours must be reported day by day.
  9. When should you submit the final hours or severance pay files?
    1. Submit the E-078, I-181 and/or I-618 at least 12 business days before theemployee’s pay issue date. This will allow time for our off-cycle team to reviewthe submission, calculate the TRM payout, and schedule the final pay.
  10. If the location submits an I-181 for a monthly paid employee, do they only reporttakes, or do they also need to include hours worked?
    1. To initiate final pay, the location would need to report both worked hours and any vacation/PTO takes on the I-181 file.
  11. Will final pay be posted based on the employees last date worked, termination date, or termination effective date?
    1. Final pay should post based on the employee’s termination date (typically thelast day on Active status in UCPath which often aligns with the employee’slast date worked). This is different from the termination effective date thatreflects the day after the last date worked and marks the employee’s first dayin inactive status.
  12. How should you report any severance to be paid on final pay?
    1. Severance pay related to the 2025 mass layoffs should be reported as follows:
      1. 10 or more employees: Submit severance requests using the I-618file. Please see the I-618 job aid for more information.
      2. Fewer than 10 employees: Submit severance requests via individualE-078 forms.
  13. How is severance pay taxed?
    1. If severance is paid together with the employee’s final hours and TRM payoutin a single paycheck, it is taxed using the aggregate method, which combinesall earnings and applies the employees’ regular tax withholding rate.
    2. If severance is paid separately – either on a separate pay run or issued on aseparate check, it is taxed using the supplemental flat tax rates in accordancewith IRS guidelines.
  14. How should I request settlement pay?
    1. All settlements requests must be submitted via Inquiry/Case and should not be included in any I-618 or E-078 final pay request. You will need to attach any supporting documentation to the settlement inquiry.
  15. What if there is a discrepancy in the final paycheck?
    1. If there is a discrepancy on hours paid or accrual payouts, authorized QCU contacts may contact QCU.
  16. What if there is a discrepancy in the severance or settlement pay?
    1. If there is a discrepancy on the severance or settlement amount paid, contact the Settlement Team via Inquiry/Case.
  17. What if a laid off employee decides to retire within 30 days from termination?
    1. The location should submit an E-078 and indicate “Retirement” in the Reason field. Under the New Payroll Requests section, the location must include the pay begin and pay end dates that align with the employee’s last period of active status. The location should report any hours to be paid. Locations must escalate the case, calling out the original reporting and/or changes to the original hours reported. Employee benefits should be extended for one month to allow the employee to smoothly transition to retiree benefits. Please refer to: Benefits Extension Request Due to Retirement.
  18. If the location submits a final pay request for a layoff and the employee is fully paid for final hours, TRM, and severance – but the employee is later rehired, what happens?
    1. If the employee is rehired with a break in service of one day or more, the final hours and TRM payout will remain valid. However, any severance paid may be subject to recovery, depending on the terms outlined in the severance agreement. Any changes to the severance previously paid would need to be called out via a case.

 

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