Payroll 110 Badge #06 - Sick Leave Conversion, Vacation Cashout, VEBA-Payroll 110 Badge #6

Payroll 110 Badge #6 - PowerPoint

Pdf Summary

Badge #6 (WASBO curriculum) explains Washington school district rules and controls for sick leave allocation/cashout, vacation cashout, and use of VEBA accounts. Under RCW 28A.310.240, districts must adopt written leave-with-pay policies for illness, injury, bereavement, and emergencies. Full-time certificated and classified staff generally accrue up to 12 sick days per year (part-time staff are prorated), and sick leave can accumulate up to 180 days, transfer between districts, and may be restored upon reemployment by policy. Leave may be front loaded at the start of the school year or allocated monthly, with processes needed to prevent employees from using unearned leave.<br /><br />Annual Sick Leave Conversion (“buy back”) is authorized by RCW 28A.400.210 and implemented through WAC 392-136. Employees with at least 60 days at year-end may cash out excess leave earned in the prior calendar year, up to 12 days, while maintaining at least 60 days after conversion. Front-loaded days not yet earned must be backed out before determining eligibility. Converted leave is paid at 25% of the employee’s current full-time daily rate (1 hour paid for every 4 hours converted), is not reportable as retirement compensation, and districts typically notify employees in January and pay in February. At retirement or death, sick leave cashout is capped at 180 days.<br /><br />The module also covers Washington’s Paid Sick Leave law (Initiative 1433; RCW 49.46.210), requiring nonexempt employees to accrue at least 1 hour per 40 hours worked, with notice requirements and special impacts on substitutes.<br /><br />Vacation cashout is paid at full value at the current rate, governed by RCW 43.01.041 and local agreements, and is not reportable for retirement.<br /><br />VEBA is a tax-exempt HRA for qualified medical expenses; contributions (including cashouts) require annual agreements and are regulated by the IRS. Internal controls, documentation retention, and verification of leave balance reductions are emphasized throughout.

Keywords

Washington school district leave policies

RCW 28A.310.240 leave-with-pay

sick leave accrual 12 days per year

sick leave accumulation 180 days transfer/restoration

front-loaded sick leave internal controls

annual sick leave conversion buy back

RCW 28A.400.210 WAC 392-136

paid sick leave Initiative 1433 RCW 49.46.210

vacation cashout RCW 43.01.041

VEBA accounts HRA IRS regulations