The VBP allows participants to purchase vacation before federal, state, and social security taxes are deducted.
Eligibility:
- Regular employees
- Limited-term employees
- Post-doctoral employees
Changes Effective January 1, 2009
Highlights
- The VBP offers the ability for an eligible employee to purchase a minimum of 8 hours to a maximum of 44 hours on a pre-tax basis.
- Purchasing vacation on a pre-tax basis allows a participant to purchase additional paid time off without being financially impacted all at once. Contributions are deducted evenly from your biweekly paychecks throughout the calendar year, beginning with the second paycheck of the year.
- Unused purchased vacation will not be carried into the next calendar year and will be sold back in the last paycheck in December at the same rate as purchased.
Guidelines
- You must re-enroll each year during Open Enrollment.
- A minimum of 8 hours to a maximum of 44 hours of vacation may be purchased on a pre-tax basis.
- The cost for these vacation hours is automatically deducted from your paycheck throughout the calendar year before taxes are taken out.
- When you take purchased vacation hours, you will be paid at the same rate as purchased and you will be taxed on this amount.
- The cost of each vacation hour you purchase is determined by dividing your full-time annual base pay as of the beginning of the calendar year by 2,080.
- Carryover, accrued/posted, and convertible vacation must be used before using purchased vacation.
- Nonrepresented full-time employees may take purchased vacation hours in half- or full-day increments.
- Nonrepresented part-time employees may take purchased vacation in one-hour increments.
- Represented full-time and part-time employees may take purchased vacation hours in one-hour increments.
- When taking purchased vacation, enter project/task numbers 10000.310 and the number of hours taken on your timecard.
- Purchased vacation hours must be used by the last timecard that is paid in the current calendar year (example: For calendar year 2008 the last timecard in the calendar year is for week ending December 20, 2008). Unused purchased vacation hours will not be carried into the next calendar year and will be sold back in the last paycheck in December at the same rate as purchased.
Tip for Managing Your Bought Vacation
Consider using your total bought vacation early in the calendar year when your vacation balance is low. Employees that hold on to the bought vacation may run into charging barriers because they have accrued too much vacation into their balance. Remember in order for your bought vacation to be charged, you must physically place the bought vacation code (A310) on your timecard.
Additional Information
