Lump-Sum Payment of Accrued Vacation and Sick Time for Deceased Employees
Examples: Computation of Hours of Leave Time
The balance of the deceased state employee’s accrued vacation time must be allocated over the workdays following the effective date and time of the employee’s death until the total accrued vacation time is completely allocated. The sick leave to be paid is then allocated over the workdays following the allocation of the vacation time.
If a deceased employee worked at least 40 hours a week, each workday will consist of eight hours.
If the employee worked fewer than 40 hours a week during a normally scheduled workweek, hours are divided by five days to compute the number of hours in each workday.
Example:
- A deceased employee worked 25 hours a week.
- Twenty-five hours divided by five days equals five hours per workday.
State employees who were scheduled to work 40-hour workweeks have eight hours added to their leave balance for each state or national holiday occurring during their balance allocation period.
Employees who work less than a 40-hour workweek also collect holiday hours. Their state and national holiday hours are equal to the product of eight hours and the percentage of the 40 hours normally scheduled in their workweek.
Example:
- The deceased employee had one national holiday during their balance allocation period. The employee normally works 25 hours a week.
- Twenty-five hours divided by 40 hours = .625 percent of a workweek.
- Eight holiday hours multiplied by .625 = five holiday hours.
- Five hours will be added to the leave balance.
Sources
Texas Estates Code Section 453.004; 34 Texas Administrative Code Section 5.44; Texas Government Code, Section 661.031-.038; IRS Publication 15 (Circular E) PDF, Employee’s Tax Guide; IRS Publication 15-A PDF, Employer’s Supplemental Tax Guide.