green checks

Kae3106

Well-Known Member
Green checks are only taxed at the higher tax rate if your supervisor puts in the request as a payoff (sellback). If they put in the request properly, payroll will pay it as a regular vacation at your normal withholding rate. There are quite a few operators in the districts who still do not understand this distinction when they put in a request for a vacation that was scheduled late or didn't get put into the calendar properly.
There is one button for entering payoffs (supplemental tax 25% federal, state varies) and one button for "Vacation Not in Scheduler" (your normal withholding rates). Payroll taxes it according to the request from the center. We see quite a few submitted as payoffs with the comment "Bob will be on vacation w/e 4/3/10" and we have to tax them as payoffs because that's how the center entered the request. However, if this happens, it CAN be corrected after the fact. The center must put in a new request explaining that they entered a payoff request that should have been entered as a regular vacation. Payroll will issue a refund of the difference in taxes and the center will be charged with a payroll error.
 

DS

Fenderbender
Green checks are only taxed at the higher tax rate if your supervisor puts in the request as a payoff (sellback). If they put in the request properly, payroll will pay it as a regular vacation at your normal withholding rate. There are quite a few operators in the districts who still do not understand this distinction when they put in a request for a vacation that was scheduled late or didn't get put into the calendar properly.
There is one button for entering payoffs (supplemental tax 25% federal, state varies) and one button for "Vacation Not in Scheduler" (your normal withholding rates). Payroll taxes it according to the request from the center. We see quite a few submitted as payoffs with the comment "Bob will be on vacation w/e 4/3/10" and we have to tax them as payoffs because that's how the center entered the request. However, if this happens, it CAN be corrected after the fact. The center must put in a new request explaining that they entered a payoff request that should have been entered as a regular vacation. Payroll will issue a refund of the difference in taxes and the center will be charged with a payroll error.
I like the way you talk
 

JonFrum

Member
Green checks are only taxed at the higher tax rate if your supervisor puts in the request as a payoff (sellback). If they put in the request properly, payroll will pay it as a regular vacation at your normal withholding rate. There are quite a few operators in the districts who still do not understand this distinction when they put in a request for a vacation that was scheduled late or didn't get put into the calendar properly.
There is one button for entering payoffs (supplemental tax 25% federal, state varies) and one button for "Vacation Not in Scheduler" (your normal withholding rates). Payroll taxes it according to the request from the center. We see quite a few submitted as payoffs with the comment "Bob will be on vacation w/e 4/3/10" and we have to tax them as payoffs because that's how the center entered the request. However, if this happens, it CAN be corrected after the fact. The center must put in a new request explaining that they entered a payoff request that should have been entered as a regular vacation. Payroll will issue a refund of the difference in taxes and the center will be charged with a payroll error.

The Contract clearly says,
"All green checks will be taxed at the employee’s regular withholding tax rate."

Kae, would you please ask your boss, "What part of All don't you understand?"

This appears to be yet another instance where official company policy is to violate the Contract.

I"ve always wondered why Payroll would tax anything at a higher rate to begin with. Why go to the trouble. Why make people angry? It's only a small portion of an employee's yearly gross pay, and he'll settle up with the IRS by April 15 anyway, so it's not going to effect anything except the employee's spirits.
 

UPSSOCKS

Well-Known Member
First of all, the vacation check is not technically late until the day before your vacation. After that The company has only 2 working days to correct the shortage, if more than $30, once notified. If not corrected on the second work day, you are entitled to 1/2 your hourly guarantee at strait time pay, for every pay period after that, that it is not corrected. They also must send it to you NDA Saturday delivery if you request it.

Article 17 of the National Master, page 44.

Upstate is way off on this one.

Yes but this guy asked to change his vacation from the week he picked in January... No Grievance here... If he would file, I would deny his vacation change and stick him with the one he originally picked...
 

UpstateNYUPSer(Ret)

Well-Known Member
The Contract clearly says,
"All green checks will be taxed at the employee’s regular withholding tax rate."

Kae, would you please ask your boss, "What part of All don't you understand?"

This appears to be yet another instance where official company policy is to violate the Contract.

I"ve always wondered why Payroll would tax anything at a higher rate to begin with. Why go to the trouble. Why make people angry? It's only a small portion of an employee's yearly gross pay, and he'll settle up with the IRS by April 15 anyway, so it's not going to effect anything except the employee's spirits.


You are quoting out of context. Your quote only applies to vacation checks. So-called bonus checks are taxed differently.
 

Raw

Raw Member
Yes but this guy asked to change his vacation from the week he picked in January... No Grievance here... If he would file, I would deny his vacation change and stick him with the one he originally picked...
Your management style leaves you with no hourly loyallty whatsoever. You are managing grown adults and someone will throw you under the bus in a heartbeat. You will not succeed without our support! :happy-very:
 

grgrcr88

No It's not green grocer!
Yes but this guy asked to change his vacation from the week he picked in January... No Grievance here... If he would file, I would deny his vacation change and stick him with the one he originally picked...

I would agree with SOCKS here, if he asked to change his vacation, he should allow a little bit of leeway in receiving the check. But if he does not get it by the second or third day of his vacation, I would be writing up a grievance.
 

ismahchyk

Active Member
UPSSOCKS

Hate to break it to you but this isn't the 1950's anymore. Don't you think its time to modernize your style for the benefit of the company?

/end rant
 

Kae3106

Well-Known Member
The Contract clearly says,
"All green checks will be taxed at the employee’s regular withholding tax rate."

Kae, would you please ask your boss, "What part of All don't you understand?"

This appears to be yet another instance where official company policy is to violate the Contract.

I"ve always wondered why Payroll would tax anything at a higher rate to begin with. Why go to the trouble. Why make people angry? It's only a small portion of an employee's yearly gross pay, and he'll settle up with the IRS by April 15 anyway, so it's not going to effect anything except the employee's spirits.

You did take that out of context. All green checks issued for a shortage of the employee's regular pay will be taxed at the employee's normal rate. Actually, they tend to be taxed a little lower. Ex: the taxes on a check for $100 will be a lower percentage than the taxes on a $900 check. The system does not recognize that the green check is really a missing piece of the larger, previously issued check and calculate what the taxes should have been if it had been paid properly. It just sees it as a $100 check and taxes according to the gross amount of the check.

Why does payroll tax anything at a higher rate? IRS guidelines for supplemental pay. (Not payroll or UPS's rule.....the government's rule) If you sell back a week of vacation instead of taking it as a vacation week away from work or get paid off for accumulated sick pay, it is considered supplemental pay under the IRS rules and subject to supplemental withholding rates. http://www.irs.gov/publications/p15/ar02.html#en_US_publink1000202352 The exact language can be found in IRS Circular E, section 7 if the link doesn't come through. Basically, if you take paid time off, it is taxed normally. If you take the cash and not the time off, it is taxed as supplemental because you got your regular check for that week PLUS the amount you sold back. However, it is all listed as wages on your W2 so you end up getting it back at tax time if the supplemental rate is higher than your nominal tax rate. This is why it is important for the operators who put in the vacation requests to understand the difference between requesting a vacation check and a vacation payoff.
 

JonFrum

Member
This is the sentence from Article 17 of the National Master:
"All green checks will be taxed at the employee’s regular withholding tax rate."

I did not take it out of context. That one sentence stands alone as a paragraph unto itself.

That sentence was added to the Contract several years ago specifically to stop Payroll from over-taxing green checks, which was a constant problem.

I thought you would mention the IRS regulations. I'll read them later. But I don't see why a negotiated paycheck is considered a buyback or a sellback or a supplemental. It's a normal part of our wages. No different than, say, overtime pay, holiday pay, sick pay, option day pay, etc.

Now you tell me UPS Payroll also under-taxes some green checks (even if only by a little)! The plot thickens!
 

JonFrum

Member
I put the vacation request in 90 prior to my vacation. The request was approved, but never submitted to payroll (an error on the hub managers part)

Some posters believe you changed your vacation selection. Is that really true?

In any event, since your vacation was approved, then it's "official." You're entitled to it just like anyone else.
 

UPSSOCKS

Well-Known Member
Your management style leaves you with no hourly loyallty whatsoever. You are managing grown adults and someone will throw you under the bus in a heartbeat. You will not succeed without our support! :happy-very:

managing grown adults that act like infants....
 

UPSSOCKS

Well-Known Member
I would agree with SOCKS here, if he asked to change his vacation, he should allow a little bit of leeway in receiving the check. But if he does not get it by the second or third day of his vacation, I would be writing up a grievance.

One more thing to add to this. You are supposed to request your weeks for vacation and alternate weeks in the beginning of the year. Vacations are granted based on seniority and if your preference week is filled by higher seniority employees, then you are awarded an alternate week. After that done deal, and vacations are set. If your manager decides for whatever reason to let you change your vacation, it is out of the kindness of his heart. This is a prime example of how good practices are outlawed. If you guys start to grieve things that your manager changed to help you out, it will no longer be allowed. If I was the payroll manager and this adjustment was sent to me, I would simply say that no one under any circumstance is allowed to change their vacations anymore.

I used to have employees that would tell me that their wife was going to give birth to their child and instead of taking Family Leave they would like to take their four weeks vacation consecutive starting the day after their child was born, and I would grant it. You guys start griveing things like this and I guarantee a higher power will outlaw this practice.
 

Signature Only

Blue in Brown
One more thing to add to this. You are supposed to request your weeks for vacation and alternate weeks in the beginning of the year. Vacations are granted based on seniority and if your preference week is filled by higher seniority employees, then you are awarded an alternate week. After that done deal, and vacations are set. If your manager decides for whatever reason to let you change your vacation, it is out of the kindness of his heart. This is a prime example of how good practices are outlawed. If you guys start to grieve things that your manager changed to help you out, it will no longer be allowed. If I was the payroll manager and this adjustment was sent to me, I would simply say that no one under any circumstance is allowed to change their vacations anymore.

I used to have employees that would tell me that their wife was going to give birth to their child and instead of taking Family Leave they would like to take their four weeks vacation consecutive starting the day after their child was born, and I would grant it. You guys start griveing things like this and I guarantee a higher power will outlaw this practice.
A higher power..... I think the Devil is pretty busy right now but I know he has a soft spot for you.
 

Bubblehead

My Senior Picture
One more thing to add to this. You are supposed to request your weeks for vacation and alternate weeks in the beginning of the year. Vacations are granted based on seniority and if your preference week is filled by higher seniority employees, then you are awarded an alternate week. After that done deal, and vacations are set. If your manager decides for whatever reason to let you change your vacation, it is out of the kindness of his heart. This is a prime example of how good practices are outlawed. If you guys start to grieve things that your manager changed to help you out, it will no longer be allowed. If I was the payroll manager and this adjustment was sent to me, I would simply say that no one under any circumstance is allowed to change their vacations anymore.

I used to have employees that would tell me that their wife was going to give birth to their child and instead of taking Family Leave they would like to take their four weeks vacation consecutive starting the day after their child was born, and I would grant it. You guys start griveing things like this and I guarantee a higher power will outlaw this practice.
It has taken from September until now, but I finally agree with Socks on an issue. I'll equate it with "the blind squirrel theory". What a logistical nightmare it must be to manage the vacation schedule. If you're lucky enough to negotiate a switch, you have no grievance on pay until your originally scheduled week arrives. To my knowledge, there is no contractual onus on the company to facilitate a switch. So to grieve anything of the sort, would be cutting off the hand that feeds you. I would expect, like Socks said, that it would be the end of vacation switches as well as your grievance being thrown out.
 

grgrcr88

No It's not green grocer!
One more thing to add to this. You are supposed to request your weeks for vacation and alternate weeks in the beginning of the year. Vacations are granted based on seniority and if your preference week is filled by higher seniority employees, then you are awarded an alternate week. After that done deal, and vacations are set. If your manager decides for whatever reason to let you change your vacation, it is out of the kindness of his heart. This is a prime example of how good practices are outlawed. If you guys start to grieve things that your manager changed to help you out, it will no longer be allowed. If I was the payroll manager and this adjustment was sent to me, I would simply say that no one under any circumstance is allowed to change their vacations anymore.

I used to have employees that would tell me that their wife was going to give birth to their child and instead of taking Family Leave they would like to take their four weeks vacation consecutive starting the day after their child was born, and I would grant it. You guys start griveing things like this and I guarantee a higher power will outlaw this practice.

I agree with you SOCKS, but does the guy not have the right to get paid fot the vacations?
 
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