The NC General Assembly approved a budget that provides $750 bonuses to eligible public school teachers and staff.
Bonuses were awarded to Wake County Schools staff this month, but I have been told that the $750 payment was simply added to employees’ regular paycheck.
This may violate guidelines (pdf) provided by the NC Department of Public Instruction’s Division of School Business. According to page 4 of the document,
How should the $750 bonus be paid?
It should be paid in the month of December, 2015 as a lump sum payment separate from the regular pay. (Emphasis added.)
SECTION 30.18A.(c) The compensation bonus awarded by this section is not part of annual salary and shall be paid out separately. (Emphasis added) The compensation bonus shall be awarded to eligible permanent employees without regard to an employee’s placement within the salary range, including employees at the top of the salary range. The compensation bonus shall be adjusted pro rata for permanent part?time employees.
It is possible that Wake County school officials met the requirement by including the bonus in the paycheck but separating it from salary. It is also possible, but unlikely, that not all bonuses were paid the same way.
The larger question is about the tax ramifications of each approach. Would Wake County Schools employees receive less (or more) net dollars if the district issued the bonus by itself? Did that play a role in the decision to add the bonus to their regular pay?
