From May 1 – 31, UNC Health Care is offering a Paid Time off (PTO) leave sell back election period with a payout on June 20. Employees on the Traditional Leave Program also have the opportunity to convert to the PTO plan and elect a sell-back during the May period.
From May 1 – 31, UNC Health Care is offering a Paid Time off (PTO) leave sell back election period with a payout on June 20. Employees on the Traditional Leave Program also have the opportunity to convert to the PTO plan and elect a sell-back during the May period.
During the PTO sell back period, employees are eligible to sell back a minimum of eight hours and a maximum of 120 hours. The amount of the PTO sell back is automatically calculated depending on the balance over 140 hours in the employee’s PTO account. To be eligible for the sell-back option, employees must have at least 148 hours of PTO available at the time of distribution (to meet the minimum of 140 hours of PTO balance and the minimum of eight hours to sell back).
For example, if an employee has 220 hours, 80 hours will be sold back automatically, leaving a balance of 140. Please note: employees cannot select an amount to sell back since it is automatically calculated.
An employee electing to sell back hours during the May 1 – 31 period will receive 90 percent of his/her base rate cash value of requested PTO sell back hours at the time of distribution. A 10 percent forfeiture of cash value is necessary to make this plan compatible with IRS regulations regarding taxability.
Employees on the Traditional Leave Program will have the opportunity to convert to the PTO plan and elect a sell-back from May 1 – 26. Click here for a comparison document that shows the Traditional leave and PTO policies side by side.
Please note the following information about the PTO sell back period:
- The sell back amount will have State Retirement deducted in addition to the standard deductions.
- An online Sell Back Election form must be submitted from May 1 – 31, 2012 in order to receive a PTO sell back distribution. The submission of the Sell Back Election form does not limit the use of the PTO during any period. If no Sell Back Election form is submitted, then the employee is assumed to not have elected to use PTO sell back for that election period.
- Employees with an existing H.E.L.P. loan balance will have the sell back amount applied to the outstanding balance first and then receive the residual in payment.
- Employees on the Traditional Leave Program have an opportunity to request conversion to PTO Leave during the May 1 – 26 period. Note: these employees may also request a sell-back following the PTO conversion.
PTO Sell Back example
John Smith has an hourly base pay rate of $20 per hour and a PTO balance of 280 hours at the start of the sell-back period.
If John submits the online sell back election during the sell back period, then he is eligible to receive a sell back of 120 hours of PTO. Even though John has 140 hours in excess of the required 140 hours (280 – 140 = 140), the maximum number of hours he can sell back is 120.
Since the cash value of the eligible sell back hours is 90%, the following calculation would be applied:
- 120 (hours) X $20 (rate of pay) X .90 (90%) = $2160.00 (less standard deductions) distributed in the sell back payout.
- The resulting PTO accrual balance in John’s account following this distribution would be 160 hours, using the following calculation: 280 (starting balance) – 120 (eligible sell back hours) = 160 (ending balance).