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Administrative Procedure 8.879 Administrative Procedure 8.879



Title

Post Death Payments

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Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.879, Post Death Payments
Effective Date:  April 2016
Prior Dates Amended:  July 1996, April 2006    
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, Authority to Manage and Control the Operations of the Campus 
Review Date:  August 2018

I. Purpose

To provide instructions for the processing of compensation due to the death of a University of Hawai‘i employee.

II. Definitions

A.  Post death payment – Final payments of a deceased employee’s compensation (e.g., regular pay, vacation pay, retroactive pay, overtime pay, etc.) payable to a designated beneficiary or estate.

III. Administrative Procedure

A.  Responsibilities

    1.  Colleges/departments must call Payroll immediately to notify them of the death of a University of Hawai‘i employee to remove them from the payroll and to notify Human Resources to initiate the proper papers.

    2.  The Payroll Office is responsible for the calculation of post death payments.

    3.  Fiscal Administrators and Program Manager (Approving Authority) who approve post death payments are responsible for compliance with applicable Federal and State laws, rules, regulations, and University policies and procedures.

B.  General Procedures

    1.  Post death payments are processed for payment via KFS as a Disbursement Voucher (DV). Post death payments are not processed through the payroll system. As such, any payroll check dated and issued after the date of death, must be returned to the Payroll Office for cancellation. The amount of the cancelled check will not be included in the W-2 of the deceased.

    2.  From the gross amount of earned compensation, deduction is made for retirement contribution (if the employee was in the contributory retirement plan). Deduction is also made for FICA and Medicare taxes (if applicable) if the post death payment is being made in the same year that the death occurred.

    3.  At the end of the calendar year in which the post death payment is made, a Form 1099-MISC will be issued by the Disbursing Office to report the gross amount of the compensation.  Per IRS ruling, the 1099 includes the amounts issued to the beneficiary, the Director of Finance (for FICA and Medicare taxes), and the Employees’ Retirement System (if applicable).

    4.  Upon official written notification of the death of an employee, the University of Hawai‘i Payroll Office will initiate a post death payment for any compensation due the deceased employee’s designated beneficiary or estate.

    5.  The Payroll Office will notify the Fiscal Administrator by a form letter (Attachment 1) and Net Pay Worksheet (Attachment 2).

    6.  The Fiscal Administrator will create a DV and attach the form letter (Attachment 1).  DV needs to be ad-hoc routed to the Payroll Office for review.

    7.  DV requires special handling to the Payroll Office.

    8.  The Payroll Office will contact the Fiscal Administrator to pick up the check for the designated beneficiary or estate. The Fiscal Administrator will be responsible to forward the check.

    9.  The Payroll Office will send the “Director of Finance” check to the Department of Accounting and General Services with the necessary adjustment forms for recordation of FICA earnings and contributions.

    10.  The Payroll Office will send the check to the Employees’ Retirement System for recordation of retirement contributions (if employee was in the contributory retirement plan).

    11.  The Payroll Office will send a check to the union if statutory dues were assessed.

IV. Delegation of Authority

There is no administrative specific delegation of authority.

V. Contact Information

Payroll Office, 956-7444, or payroll@hawaii.edu
Website:  http://www.fmo.hawaii.edu/payroll/index.html

VI. References

A. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
B. Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php

VII. Exhibits and Appendices

Attachment 1:  Post Death Payment Form Letter
Attachment 2:  Net Pay Worksheet

Approved

    Signed    
    Kalbert Young    
    April 01, 2016    
    Date    
    Vice President for Budget and Finance/Chief Financial Officer

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