Payroll 210 Badge #02 - Death of an Employee-Payroll 210 Badge #2

Video Transcription

Video Summary

This training (WASBO Payroll Certification Badge 2) explains how school districts should handle payroll and benefits when an employee dies. It emphasizes coordinated communication: notify appropriate department heads and the employee’s work group before any district-wide message, and contact the spouse or designated family member to schedule a meeting and provide written guidance.<br /><br />Before meeting the family, payroll/HR should confirm last day worked and date of death, ensure all leave is posted, determine benefit end dates, enter the termination in SEBB, and complete the SEBB C-5 Survivors worksheet. Prepare documents such as a W-9 and a notarized claim/proof of death form (required before releasing final pay), and maintain records for year-end reporting.<br /><br />System/payroll steps may include removing direct deposit (final pay is a paper check to the estate), stopping leave accruals, closing contracts, and setting federal withholding to exempt to avoid incorrect FIT withholding. Sick leave cash-out rules are reviewed (up to 180 days at a 4:1 ratio, per WAC), plus CBA-driven personal/vacation cash-outs.<br /><br />Tax reporting differs by payment timing: if paid in the year of death, withhold Social Security/Medicare but not federal income tax and report accordingly; if paid after the year of death, do not withhold FICA/Medicare/FIT and report payments to the estate on a 1099-MISC. The course also covers ending SEBB benefits, notifying DRS, and using checklists and sample letters/forms.

Keywords

employee death payroll procedures

school district HR communication protocol

SEBB termination and C-5 Survivors worksheet

final paycheck to estate paper check

leave accrual stop and sick leave cash-out WAC 180 days 4:1

tax reporting year of death vs after death (W-2, 1099-MISC)

benefits termination notifications (SEBB, DRS)