I am pleased to inform you that the paycheck for this Friday, dated 12/8/17, will include the retroactive rate adjustment payments from July 1, 2016 to June 30, 2017 for hourly, OT, nurse stipends, and base pay.
Please be advised the retro payment is classified as a Supplemental/Bonus Pay as defined by the IRS. Here is a link that explains the IRS policy – Page 18 is where the Supplemental Pay section starts: (https://www.irs.gov/pub/irs-pdf/p15.pdf). This payment is taxed at 25% for Federal taxes and 9.62% for New York State taxes. Please note ONLY the RETRO portion has been taxed at the Supplemental/Bonus Pay rate. Your regular paycheck will be taxed the same as usual.