- All employees working less than a full year are subject to the IRS regulations.
- 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.
- The written election must be made by the first day of employment.
- The written election must be made at the beginning of each academic year.
- Once the written election has been submitted it may not be revoked by the employee.
- 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).
- 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.
- 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
|