What is this new program?
We have proposed a temporary amendment to our existing Salary Advance Policy to extend eligibility to employees currently serving a consecutive-day furlough.
Why are we implementing this program?
This program was created in response to requests from UW System institutions, based on reported delays in Unemployment Compensation payments to furloughed employees.
Who is eligible for salary advances under this new program?
Employees who are currently serving a consecutive day furlough of at least 30 days are eligible. As this is a salary advance, there must also be an expectation that the employees will return to paid status after the conclusion of their furlough.
What is the maximum amount of the advance?
The maximum amount of the advance available under this policy is one month’s pay. This is a single normal paycheck for monthly-paid employees, or two normal paychecks for biweekly-paid employees. Under no circumstances may the amount advanced exceed $9,999 regardless of pay level.
What are the repayment options?
Employees have three choices: 1) they can repay the advance before they receive their first post-furlough paycheck (such as- when they receive their initial unemployment payment which includes a lump sum for previous weeks), 2) they can repay the advance out of their first post-furlough paycheck (in the case of monthly employees) or first two post-furlough paychecks (in the case of biweekly employees) or, 3) they can repay the advance out of a portion of their post-furlough paychecks over the course of several months (up to 4).
What happens if an employee leaves the UW System before repaying their advance?
If an employee leaves the institution before the advance is repaid, the institution is authorized to take the full amount from the last payroll check or collect from the employee.
Is this program funded by the System Administration?
No, the individual institution must fund the salary advance from their own institutional funds.
Is this a loan?
No, this is a payroll advance. There is no interest charged to the employee and no separate promissory note apart from the Salary Advance Request and Payroll Deduction Form.
Are payroll taxes withheld from the advance?
Yes, IRS guidelines require that wage income be taxed at the time it is received. The withholding is subsequently adjusted on each paycheck that includes a repayment.
Where can I find the exact process for implementing this program at my institution?
The process is incorporated into the Interim Amendment document #200- Interim 02, Salary Advances for Furloughed Employees, in Section 5. Additional guidance can be obtained from UW Shared Services by contacting Customer Support at firstname.lastname@example.org.