1 / 5

One Time Merit Pay

One Time Merit Pay. By Payroll Office Javier Martinez, Director. One Time Merit Pay. Classification of Pay Drives payment treatment IRS: Supplementary Pay Supplementary vs Regular Payments IRS Publication 15 FLSA: Non-discretionary Bonus. One Time Merit Pay - Taxation.

doris-briggs
Download Presentation

One Time Merit Pay

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. One Time Merit Pay By Payroll Office Javier Martinez, Director

  2. One Time Merit Pay • Classification of Pay • Drives payment treatment • IRS: Supplementary Pay • Supplementary vs Regular Payments • IRS Publication 15 • FLSA: Non-discretionary Bonus

  3. One Time Merit Pay - Taxation • Social Security & Medicare Taxes apply - 7.65% • Considered Retirement Compensation and subject to Contributions • 6.4% TRS or 6.65% ORP • HB 1545 (2001), SAO and TRS • Supplemental Income Tax Rate: 25% • Withholding Tax • Total Taxes: 39.3% ORP, 39.05% TRS

  4. One Time Merit Pay - Overtime • FLSA Payment Classification • Non-discretionary Bonus • Retroactive Overtime Re-calculation Required • Re-calculation period related to review period • February 1 2009 through January 31 2010 • Requires no involvement from departments; Payroll will: • Identify all Overtime Payments • Re-calculate Overtime • Process OV5 document • Advise affected employees • Target Payout Date: January 21, 2011 • Budget will allocate funds to cover 14- account additional payments

  5. One Time Merit Payment • Questions?

More Related