Bonus for School Employees
At the School Board Work Session last night a bonus was discussed for School employees.
The proposal was made for a $300.00 bonus for employees this was changed by Mrs. Murrey to $500.00 which was agreed to by other Board member present. It was also clarified that this bonus would go to each employee of the system with such people specifically mentioned as teachers, bus drivers, cafeteria workers, maintenance, custodial workers.
While the money is there the problem seems to be one of timing, getting approval from the various committees and Commissioners, it looks as if it may be April or May before all can be done and money actually change hands. This is a proper use of school money at this time and much deserved by those targeted.
The question that I have about this matter is one that has me completely confused and that is why it actually will cost the school system $815.00 per employee to give them a $500.00 bonus. The explanations that have been offered thus far have been as confusing as why a dog chases it's own tail. Why would it cost the school system $815.00 for each $500.00 bonus there? That's is 61% above the $500.00 bonus. The only thing that should be added to the $500.00 bonus is simply to pay the 21.5% FICA (Social Security tax of 12.4% and Medicare tax of 2.9%)and possibly the 6.2% personal withholding. Because the personal withholding is usually paid by the individual and returned to the individual, if there is a tax withholding excess, I'm not totally convinced that it's the best thing to pay the 6.2% for everyone as this would be an unequal benefit.
For me there needs to be a very clear explanation to justify any amount in excess of 21.5% ($107.50) being discussed over the actual $500.00 bonus. I strongly support the bonus being given but certainly question the total cost as presented in the Board Work Session. Allen Barrett
The proposal was made for a $300.00 bonus for employees this was changed by Mrs. Murrey to $500.00 which was agreed to by other Board member present. It was also clarified that this bonus would go to each employee of the system with such people specifically mentioned as teachers, bus drivers, cafeteria workers, maintenance, custodial workers.
While the money is there the problem seems to be one of timing, getting approval from the various committees and Commissioners, it looks as if it may be April or May before all can be done and money actually change hands. This is a proper use of school money at this time and much deserved by those targeted.
The question that I have about this matter is one that has me completely confused and that is why it actually will cost the school system $815.00 per employee to give them a $500.00 bonus. The explanations that have been offered thus far have been as confusing as why a dog chases it's own tail. Why would it cost the school system $815.00 for each $500.00 bonus there? That's is 61% above the $500.00 bonus. The only thing that should be added to the $500.00 bonus is simply to pay the 21.5% FICA (Social Security tax of 12.4% and Medicare tax of 2.9%)and possibly the 6.2% personal withholding. Because the personal withholding is usually paid by the individual and returned to the individual, if there is a tax withholding excess, I'm not totally convinced that it's the best thing to pay the 6.2% for everyone as this would be an unequal benefit.
For me there needs to be a very clear explanation to justify any amount in excess of 21.5% ($107.50) being discussed over the actual $500.00 bonus. I strongly support the bonus being given but certainly question the total cost as presented in the Board Work Session. Allen Barrett
posted by Allen Barrett | 10:53 AM
28 Comments:
If the net pay is either $300 or $500 you will have to deduct the 6.2% FICA, 1.45% Medicare and 5% retirement plus the 25% federal income tax which is required for a bonus check. Then you have the 6.2% match, 1.45 match and the retirement for the certified rate and for support rate which is higher. The deductions from the employee check alone is 37.65% without the matching rates. They are not hiding anything. I am sure that Mrs. Garner would be happy to explain where the amounts are coming from.
Gross Bonus $815.00
FICA 50.53
Medicare 11.82
Fed. Income
Tax(26%) 211.90
Certified
Retirement 40.75
_____________________
Net $500.00
I don't believe there was anything said about hiding anything only not giving a clear explanation at the meeting. Simply based on your figures the total for a $500.00 bonus would only be $188.25 for a total cost to the county of $688.25 that is still a far cry from the $815.00 that was discussed last night.
My question is why must anything be sent to the retirement fund since this is a one time bonus. If a person's salary is $25,000.00 they are required to pay their part of the FICA and retirement out of that amount. The county also pays their share. When April comes around it is up to the individual to have their tax returns presented for either a tax refund or payment and the employer has nothing to do with that part. The employer is not responsible for underpayments nor do they receive any refund.
I support the county giving the $500.00 bonus and paying their share to the government but if they choose to give the bonus along with all the expense then stop referring to it as a $500.00 bonus and properly identify it as a $688 bonus and explain why $815.00 was the total per person discussed last night. Allen Barrett
Mr. Barrett have you forgotten the one time pay that was paid a couple of years ago. The employees were told they were going to get $1000. When they got their check if was around $800 and everyone pitched a fit. I think that is what they are trying to prevent. As for retirement it is a required deduction just like federal income tax. 6:29 told you what the deductions were. On top of that you have to add fica and medicare again as a county match plus the county portion for retirement. If you give the employees $500 gross they will net around $307.75. 6.2 fica, 1.45 medicare, 26% federal and 5% retirement are not optional. Full time employees are required to have retirement deducted from any check they are paid.
Do you mean we are now having 26% taken out of our check for income tax no matter where we work? I've just accepted it and never thought how much it was.
Yes, I remember the uproar over the $1000.00 bonus and hope that situation will not be repeated. I appreciate the comments and your attempts to help me understand this situation, maybe I’m not making myself clear.
Let me start from the beginning and try it this way. .
A bonus of $500.00 requires that a total of 15.3% be withheld for FICA (12.4% social security and 2.9% medicare that is both the employee and the employer’s share). Then you have 5% withheld for retirement. To this point everything is the same for each individual and I am in agreement with this part.
Now there are actually two methods for determining the federal withholding tax on the bonus: one is the simple straight percentage method which is 25% of the bonus amount; the other is the aggregate method which is based on the actual amount of wages and tax withheld to the date of the bonus, this method requires more time and work. Under this method the percentages fluctuate so that a person making $20,000.00 with four dependents will not have as much withheld as a person making $20,000.00 with no dependents. There is a third alternative and that is to simply adjust the number of exemptions claimed.
Regardless of which of these methods is used individuals will benefit from the amount withheld differently. Example, three employees each makes $20,000.00 plus $500.00 bonus. I did not include the FICA liability as it is the same with no recovery. The withholding is 10% on salary plus 25% on the bonus for a total of $2125.00 for each person. When they file their taxes employee #1 is single with no dependents and gets no refund. Employee #2 is married with four dependents and gets a refund of $2125.00. Employee #3 is married with only two dependents and gets a refund of $1000.00.
If the employer pays the withholding both employee #2 and #3 get a total of $625.00 while employee #1 only gets a total of $500.00. That is why I do not believe it is fair, reasonable or appropriate for the employer to pay the 25% above the $500.00 but that it should be taken out of that individuals $500.00. Allen Barrett
To 6 Jan 8:28.
The federal government has counted on individuals to not pay attention to the amount they are having confiscated from your paycheck every week that is what has enabled the government to take so much from you for so long. Wait till you hear the uproar when people realize how much they owe in additional taxes due to their "stimulus" checks and "cash for clunkers". You have to pay close attention or they will eat you alive. Allen Barrett
I agree with the unfairness 100%. The problem is making people understand why they did not get a $500 bonus. That is what happened a few years ago, people were outraged when they did not receive what they were told they would get. Apparently the average person does not understand their payroll checks.
Okay, Let me get this straight. If I get hired on with the school system for $10.00 an hour and I work 40 hours, I will get a check for $400.00 ? Please sign me up. Does this also mean that everyone who gets 2 weeks vacation can actually take off 14 work days?
If school employees get a $500 bonus it is the responsibility of the employee to have the appropriate deductions made from that $500 and not the responsibility of the county to pay those deductions. Be thankful you are getting anything. There are still masses of people in this county who don't have a job, no prospects for ever getting one, and many not able to put food on their tables or pay their heating bills.
Remember too, social security recipients did not receive even COLA for this year due to "zero inflation"! (Been to the grocery store lately?) Again, be thankful for what you will get in extra income.
I think that most of the school employees will be more than happy to get anything. Support staff have not had a raise in about 5 years. Teachers had state raise last year but no county raise. I am for the bonus with or without the deductions. I could pay bills my spouse is laid off.
7:05 AM Thanks for being realistic and good luck to you and your family. Sad indeed we dont have more jobs in Gils county.
I must have missed a state raise last year???? I am a teacher and I did not get one?????
Well you must not have been paying attention because you got a 1.1% which may not seem like much but over the past ten years Teachers in Tennessee have gotten over 28% pay increases.
in the 2008-09 school year the state gave teachers a $325 bonus. No raise. After deductions (both employee and employer) each teacher received $181, which is not a lot, but more than some folks received.
GTC Says:
This has nothing to do with this blog subject ..... BUTT
Allen:
Why do we have a small business development director and/or coordinator (as has been announced by our Chamber) as well as an Economic Development Director?
WOW
Is Dan Speer that over worked???????
I wish I could answer that question but every time I post something and even when i don't post anything I get accused of just stirring up trouble.
I think it may not be so much that Mr. Speer is overworked as possibly some are beginning to think and act for themselves instead of waiting for the tooth fairy to magical do everything for them. Allen Barrett
The $325 bonus was not 08-09. I am not sure which year but definitely not last year. And because of the the was the deduction was such a fiasco they are trying to give a net bonus of either $300 or $500.
A $500 bonus should be $500 added to gross pay, period! Yes the system must pay the legally required employer portion of taxes, but that is it! It's the employees responsibility to pay their portion of FICA, MEDICARE, withholding, & any retirement. - Suck it up & get real!
ANY RAISE IS BETER THAN NONE! MILLIONS DON"T HAVE A JOB!!!
8:27
You are exactly right on both counts!
Think about this - of all the departments in government, only the administrators of schools can't get their math right, can't figure out how save a little & make things work in hard times, & can't keep their hands out of the cookie jar. When you put the screws to your workers in good times, there will never be real good times.
We need a new form of redistribution of wealth - take back from those who have plundered & reduce taxes. Roll back the bureaucracy & give the employees the cola raises they should have received when spending was 2 or 3 times the inflation rate.
A thought occurred - If the soothsayers can't coginate a simple process of giving all folks a raise by the exact same amount, how in the world will there be resources and time to teach the little darlins how many days there are in a week, let alone a year in a universe that might add an extra day every four years or so?
Solution - give the money to the soothsayers & they'll give the illiterate masses what they deserve.
He who will not protect his cookie jar deserves no cookies.
I heard Barrett told the School Board and Commissioners that he was opposed to school employes getting a bonus that they made enough already.
To 7 Feb 8:58.
You would be almost right if you weren't absolutely wrong. What I said at the School Board meeting, The School Committee Meeting and the Budget Meeting about the raises was essentially the same thing. I believe there was no ambivalence in my statements and anyone who was actually there can tell you I very strongly stated that the teachers and support staff not only deserved a bonus but had more than earned any bonus that was being considered. I made it very clear that to have the money and not give the bonus to each employee of the school system was not only unfair it was reprehensible and that to even consider not giving the bonus to support staff as had been suggested was an outrageous abuse and injustice. The truth about this is probably more easily discerned than the phantom party I was accused of having on another thread as there are far more witnesses to ask. Allen Barrett
wab
It appears to many that you find everything outrageous and reprehensible that is not in line with your opinions and way of thinking.
I for one think anything is "outrageous and reprehensible" that is passed off as the truth when it is a plain lie. What Mr. Barrett responded to was a plain out and out lie.
We finally got our bonus after how many months. Thanks Mrs. Murrey for asking for more than suggested amt. and thanks board and commission for allowing this to happen.
Thank you board for voting this bonus in. And to the commissioners who voted for it thank you. These rest of the commissioners are so against Jackson that they keep voting no for things that are good just to spite him. Not a good idea. You are not hurting him but other people.
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