Notice of IRS change to deferred compensation, Sec.
409A - IRS FAQs (PDF)
Failure to comply could result in a 20% penalty tax
In the past
faculty salary has defaulted to pay over 12 months, and faculty had to
positively request to be paid over 9 months. Recent IRS regulations now
require faculty to make an election to spread their compensation out to
12 months.
Employees with a
nine (9)-month basis appointment may be eligible to elect salary spread
so that payments are distributed over twelve (12) months. Once salary
spread has been elected the arrangement is irrevocable for the remainder
of the fiscal year. It will remain in effect for all future fiscal
years until a cancellation request is received by the Office of Human
Resources or until the employee becomes ineligible. Any change request
will be effective September 1st of the following fiscal year.
Please Note:
State of Texas retirees are not eligible to participate.
Effective 9/1/2008
faculty salary will default to 9 over 9 months. Faculty MUST positively elect to be paid over 12
months through Oracle Employee Self Service,
https://myadmin.utpa.edu. Election
must be done prior to 8/31/2008. Click on this link to download
the instructions on How to
Elect Faculty Spread.
Faculty paid over
9 months will have a double deduction for benefits for the months of
November, February, and May to pay for benefits for June, July and
August.
Changes in status
that will result in the cancellation of salary spread and a settlement
of reserved amounts include separation, retirement, or death.
If you have any
questions please contact your college's Administrative Services Officer
at the Dean's Office. For more information, please visit the following
website:
