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WELCOME BE ADVISED BROOME COUNTY TRANSIT WILL BE CLOSED ON SATURDAY JULY 4TH, 2009 ATU ANNUAL FAMILY PICNIC Sunday, July 19th, 2009 Cole Park, Pavilion 3 8am til closing or until everyone leaves Meat will be provided by the local, bring your own dish to pass... Burgers, hot dogs, sausage & peppers, corn-on-the-cob, baked beans and salt potatoes!! Items like paper plates, plastic-ware, napkins, cups, soda and bottled water will also be provided. Dessert contest again with cash prizes awarded. We have boat discount coupons for you to use on the lake. Bring your swim suit and go swimming, go fishing, hike the trail around the lake! Horseshoe games, possibly softball, etc... just come and have some family fun!! NEW LONGEVITY PAYROLL INFORMATION All supplemental wages are taxed at 25% in the new Payroll system. The definition of supplemental wages according to the IRS is as follows:
Supplemental wages are compensation paid in addition to an employee's regular wages. They include, but are not limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages.
By this definition longevity and the sick pay incentive are considered supplemental wages. The attendance incentive quarterly payment can be handled in two ways:
Supplemental wages combined with regular wages. If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total were a single payment for a regular payroll period.
Supplemental wages identified separately from regular wages. If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold income tax from your employee's regular wages. TO ATU MEMBERS: SUBJECT: LUMP SUM SUPPLEMENTAL WAGE PAYMENTS DATE: April 19, 2009 As you may be aware, there have been inquiries to the Finance/ Payroll Department from ATU members about a recent change in tax withholding procedures of lump sum supplemental wage payments for such benefits as tool allowances, attendance incentives, longevity pay, etc. According to IRS
regulations these wages are considered to
be supplemental as they are paid in addition to an employee’s regular
wages. To comply
with IRS regulations the PeopleSoft
payroll system taxes supplemental wages identified
separately from regular wages at a rate of 25% federal tax
withholding. There are
no exceptions or other % allowed. Supplemental wage payments included in employees’ normal regular wages and specified amounts separately, are subject to federal tax withholding at 25% as well. These wages would be identified as supplemental even if paid in a single check. Based on the above, the Finance/ Payroll Department, is highly recommending that any lump sum supplemental wage payments be included in employee’s normal regular wages effective immediately, rather than be payable in separate checks. To cut manual checks in the new system requires a separate payroll to be run and is a very tedious process. ATU is agreeable to including supplemental wage payments in employee’s normal regular paychecks and not on a separate check.
Signed: _______________________ _________ Peter Schiraldi Date ATU Pres. ______________________ __________ Thomas H. Behan Date Director
of Employee Relations 
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