4.06.02: Unused Vacation or Annual Leave Pay

Any payments for unused vacation or annual leave are considered nonreportable on a DTL2 record. However, the wages must be considered as part of gross earnings when calculating member and employer contribution withholding for the Defined Contribution portion of a member benefit plan and for the Personal Healthcare Fund. The wages must be included in the Employer Reported Wages field on a DTL4 record.

Please note: reportable and nonreportable “compensation” is defined in MCL 38.1303a and only applies to active MPSERS members. For information on reporting earnings for retirees please see section 9.01: Earnings of Retirees Who Return to Work.

Last updated: 02/10/2017