Human Resources Policies
HR53 Deceased Employee's Final Salary Payment
Policy Status:Under Review>
Policy Steward:Vice President for Human Resources>
POLICY'S INITIAL DATE: November 25, 1953
THIS VERSION EFFECTIVE: March 17, 1997
NOTE: The implementation of SIMBA requires the review of many University Human Resource Policies and Guidelines. After consultation with key constituencies, work has been underway to update, consolidate, and improve our policies and guidelines to better serve the Penn State community. However, please be aware that due to the volume of the impacted policies and guidelines, not all policies are currently updated to reflect changes which have been communicated; however, the policies will be updated soon and have appropriate and applicable effective dates listed. We appreciate your patience as we work through this review process. Any questions can be directed to HR Services at 814-865-1473 or submit an inquiry via WorkLion.
- Determining Final Date for Payment for a Deceased Regular Employee
- Determining Final Payment for a NonRegular Employee
- Deduction from Final Payment
- Issuance of Final Salary Check
To outline the policy to be followed when determining a deceased employee's final salary payment.
The final salary payment will be calculated on a pro rata daily basis to and including the date of death if the deceased was actively employed, using vacation, sick leave, other paid time off, or on leave with pay. If the deceased employee was included in a vacation plan that provides for the payment of unused vacation at the time of termination of employment, a payment for unused vacation, service days, or compensatory time off, if any, will also be included in the final salary check.
However, the additional payment shall not cause the faculty or staff member's pay to exceed the total pay specified in the terms of a fixed-term appointment; nor shall the additional payment be made for an employee on a permanent layoff, or on a layoff where recall had been anticipated more than 30 days from the date of death, even though such employee may be receiving payment for accumulated time off. The payment will be made on a special check issued to the proper payee in accordance with the laws of the Commonwealth of Pennsylvania. No deductions will be made from the special check.
In the event of death of a nonregular employee, wages will be paid to and including the last day on which the deceased employee worked. If the deceased employee was included in the earned time program as provided for in HR05, "Regular and NonRegular University Employees," a payment for unused earned time and service days, if any, also will be included in the final check for wages.
|Type of Deduction||Amount Deducted|
|Federal Income Tax||Not deducted|
|Local Wage Tax||Not deducted|
|State Income Tax||Not deducted|
|Retirement Contributions||Deduction made on salary or wages, excluding vacation or lump sum death payment.|
|Life Insurance||Deductions made|
|Voluntary AD & D Insurance||Deductions made|
|Long Term Disability||Deductions made|
|Flexible Benefits||Deductions made|
|Social Security||Deductions made on salary or wages if total annual earnings do not exceed the taxable base (only if paid in the same calendar year)|
|Union Dues and Fair Share Fee||Deductions made if final check is regular dues deduction check|
|Special Union Deductions||Not Deducted|
|U. S. Savings Bonds||Not Deducted|
|Credit Union||Not Deducted|
|Parking Fee||Not Deducted|
|Contributions to Penn State||Not Deducted|
|Tax Deferred Annuity||Deduction will be made if funds are sufficient|
Questions regarding the specific deductions from the final salary check should be directed to the Payroll Department (865-7621).
The final salary check of a deceased employee will be issued to the proper payee in accordance with the laws of the Commonwealth of Pennsylvania as follows:
- If the net amount of the final salary check after payroll deductions is $5,000 or less, it may be made payable to the surviving spouse, any child, the father or mother, or any sister or brother in the order named.
- If the net amount of the final salary check after payroll deductions is in excess of $5,000, $5,000 of the total amount may be made payable to the surviving spouse, any child, the father or mother, or any sister or brother in the order named, and the amount in excess of $5,000 shall be made payable to the estate of the deceased employee.
Date Approved:March 17, 1997>
Date Published:March 17, 1997>