Summer Pay Now Available!
Brought to you courtesy of the LEA! This will be the first year of this new program! This plan is only for 10 month employees. DIRECT DEPOSIT IS MANDATORY.
Starting 9/1/09 thru 8/31/10. Receive 24 checks (Direct Deposit) versus 20. Summer checks (4) will be a different amount than checks received Sept. thru June (20). If you did not sign up this year, you will have the opportunity to sign-up for next year.
FORMULA: Your gross salary is not divided by 24. 10% of gross pay will be deducted from 20 checks, then you will receive that amount divided by 4 over the summer – July 15th, July 31st, August 15th and August 30th. All taxes, deductions for 403(b) plans, etc. are paid from September thru June checks.
EXAMPLE: If your yearly salary is $60,000 this amount will be divided by 20 ($3,000)
This amount would then become your bi-monthly salary with normal deductions, taxes, pension, dues, etc. Let’s say $2100 would be your take home – from that amount $600 would be deducted for summer pay, reducing your take home pay to $1500 twice a month. Your yearly salary is not divided by 24. Part of the reason has to do with pension. 10 month employees DO NOT want their pension based on 12 months – it would take you longer to reach your 25 years!!!
10% of gross pay will be deducted from bi-monthly checks September thru June. New hires cannot sign up their first year of employment. It is extremely important that you understand that the 10% is determined by State statute – it is not up for discussion. There are no other amounts available.
Each year you must sign up for the summer savings plan – it does not automatically rollover. There will be an annual enrollment that must be completed by June 15th for the following twelve months starting with September. Once enrolled YOU CANNOT DROP THE PLAN or OPT-OUT DURING the year. Therefore it is extremely important that you take a good hard look at your finances. After receiving your first check in September you cannot decide it doesn’t work for you. You are committed for 12 months.
Money will be placed in an interest bearing sub-account of the district and cannot be withdrawn at any time. Accumulated interest will be added to the amount contributed and figured into the 4 summer pays. If interest is over $10, you may receive a 1099 form at tax time. You will be required to sign a contract to institute the savings plan. In case of death, monies will be transferred to one’s estate.
If you need additional help guesstimating your take home salary, you may contact Debbie Ludwig, Payroll Manager at ext. 8005.