A Message from the Office of Human Capital
With the conclusion of the 2022-23 school year, eligible RTA members were paid a retention incentive payment of $1,500. To avoid having the bonus added to a regular pay and increasing the taxes on that overall pay, the bonus was paid as a supplemental payment today. However, taxes are still owed on the funds. Specifically, the IRS requires that supplemental payments be taxed at a flat rate of 22.0% for federal. In addition, the State of New York requires a flat tax rate of 11.7%. It is quite possible that these federal and state deduction percentages are higher than your regular paycheck. However, your regular paycheck deductions do not factor getting a bonus of $1,500. The IRS and State establish flat rates to avoid people from under withholding taxes. Ultimately, your taxes withheld are reconciled against taxes owed when your tax return for 2023 is filed in 2024. If you are over withheld, you will end up getting a refund. Note that a total of 7.65% also is withheld for Social Security and Medicare as required by law. If an employee is under a garnishment based on a percentage of wages, this would be deducted as well. With the anticipation of the bonus, people may have been expecting to receive most, if not all, of the $1,500. However, the federal and state governments always get their money off the top. If you have questions, please e-mail payroll@rcsdk12.org or call the general payroll department number 585-262-8265. The volume is heavy today, but we will get back to you as soon as we are able to answer your questions.
Thank you for serving the students of Rochester for another school year. Have a great summer and we will see you again in September.
Christopher Miller, Ed.D., pHCLE | Chief of Human Capital
Rochester City School District
131 West Broad Street | Rochester, NY 14614
Office 585-262-8384 | Fax 585-295-2603 | Christopher.Miller@rcsdk12.org | www.rcsdk12.org