Pay Schedule Change



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Payment for Supplements, Stipends, and Other Miscellaneous Work Now Paid on Monthly Paychecks

Effective January 2004, payment for employees’ stipends, after-school tutoring, or other miscellaneous work is now included in the employees’ monthly paycheck. Previously, these payments were made on a separate miscellaneous paycheck.

Who Does This Affect?

This change applies to all certified/classified employees that are paid on monthly payroll and who receive additional pay for stipends, after-school tutoring, or other miscellaneous work.

Why Was This Done?

The primary reason for making this change was to ensure that proper federal (IRS) tax withholding is deducted from each employee’s paycheck. By putting these payments on separate miscellaneous checks, as was done prior to January 2004, it was likely that the amount of tax withheld was less than the amount of tax the employees would ultimately owe. Another reason for this change was to streamline the payroll process, along with other changes made as we implemented the new PeopleSoft system.

My Net Take-home Pay is Less Now, Does This Mean I Am Making Less?

If you are one of the employees affected by this change, your net take-home pay could be less than it was before January (assuming there were no other changes in your pay). However, the total pay you are receiving for the miscellaneous work is still the same. All that has changed is the amount of taxes withheld.

Where Does the Amount that is Being Reduced from my Take-Home Pay Go?

Any additional taxes withheld from your check, which would result in your take-home being less, are submitted to the IRS as required.

Are These Miscellaneous Payments Taxed At A Higher Rate Than My Regular Monthly Pay?

No, the tax withholding for these miscellaneous payments are calculated at the same rate as your regularly monthly pay. These are not calculated using any special bonus or other rate.

Will I End Up Paying More in Taxes?

This change will not, in itself, cause you to pay more taxes. The amount that you owe in taxes, when you file them with the IRS, will be the same as it would have been had we not made this change. Ultimately, though, the total amount of tax you owe is dependent upon a range of factors (income, marital status, deductions, etc.). Your total tax obligation will not be affected by this change, only the amount of taxes withheld during the year will be different.

Can I Do Anything to Increase My Take-Home Pay?

Yes, if you feel this change is causing more taxes to be withheld from your paycheck than necessary, you can adjust the number of exemptions you have. To do so, you simply need to fill-out a new IRS W-4 form and submit it to the Payroll Office for processing. If you need a copy of the form or have questions, feel free to contact the Payroll Office at 770-995-6380. Be advised that you need to exercise caution when adjusting your exemptions, to avoid significantly under-withholding taxes for the year. Consult the IRS website (see below) for more information on tax withholding and/or contact a tax professional for specific guidance.

Where Can I Go For More Information on Tax Withholding?

The IRS has a publication available on their web site (Publication 505 – Tax Withholding and Estimated Tax) that addresses this issue and provides instructions for completing the W-4 form. The web address for this publication is .

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