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IRS Regulations for Annualized Compensation

HROG Section:
Compensation
Document Title:
IRS Regulations for Annualized Compensation
Initial Date Posted:
2007-2008 Academic Year
Board Approval:
Applies To:
Employees Who Work Less Than A Full Year
Source:
Related TASB Policy:
Last Date Revised:

Purpose

Background

Definitions

Eligibility

Procedures

  1. All employees working less than a full year are subject to the IRS regulations.

  2. An employee who works less than 12 months wishes to have his salary spread over 12 months, the employee must make a written election to annualize her compensation.

  3. The written election must be made by the first day of employment.

  4. The written election must be made at the beginning of each academic year.

  5.  Once the written election has been submitted it may not be revoked by the employee.

  6. If an employee fails to make a written election by the first day of work in the new academic year the safest course of action would be to request non-annualized payments (receive pay on a 9 or 10-month basis, as applicable).

  7. If an employee does not wish to annualize his/her compensation (because an employee either prefers to be paid on a 9 or 10-month basis, or because employee did not sign the annualization form by the first day of work), he/she may choose not to have his/her compensation annualized.

  8. An employee is responsible for timely submitting payments for any portion of benefit premiums during any period they may not receive a paycheck.   

Payroll Schedule Election Form (PDF - 8KB)

 

Employee Responsibility

HR Responsibility

Exceptions To Policy

Other Notes

Related Links