Just in time for the holidays, there will be a “little something extra” in everyone’s paycheck this month: a one-time, lump-sum bonus of $750 for all permanent, full-time employees.
The winter windfall was approved by the North Carolina General Assembly in September as part of its annual statewide budget.
No, the bonus will not increase your paycheck by exactly $750, but it will be taxed at your regular rate, not at supplemental tax rates, and there will be no mandatory retirement deduction. So most employees should see a one-time increase in excess of $500.
Here are a few answers to questions that faculty and staff might have about what they will find in next week’s paycheck.
Q. Who will receive the $750 bonus?
A. All benefits-eligible State Human Resources Act (SHRA) permanent, probationary, trainee and time-limited employees and all permanent, benefits-eligible Exempt from the Human Resource Act (EHRA) faculty and non-faculty employees who were working full-time as of Nov. 1, 2015, are eligible for the $750 bonus. Eligible part-time employees with a combined FTE of 0.75 to 0.99 will receive a prorated bonus. Permanent, benefits-eligible employees on approved leaves of absence (unpaid or paid) will receive the bonus. This includes eligible employees on short-term disability and faculty on scholarly assignment.
Q. Are faculty phased retirees and postdocs eligible for the bonus?
A. Faculty who entered the Phased Retirement Program on July 1, 2015, are not eligible for the bonus; however faculty members who entered the program in 2014 or prior years are eligible for a prorated bonus of $375. Postdocs are not eligible for the bonus.
Q. When will the bonus be paid?
A. The one-time bonus will be included in the Dec. 22 paycheck. For permanent employees paid on the bi-weekly payroll, it will be included in the Dec. 18 paycheck.
Q. How will the bonus be taxed?
A. The bonus will be taxed using the same method as the employee’s regular paycheck. It will not be taxed at the supplemental tax rates.
Q. What deductions will be withheld from the bonus?
A. The bonus is not subject to the mandatory retirement deduction. All other elective deductions can be withheld from the bonus.
Q. How will the bonus appear on the pay stub?
A. The bonus will be labeled “Compensation Bonus” on the pay stub.
Q. Are employees who separate from employment in November or December eligible for the bonus?
A. Employees who separate in November or December and who otherwise meet the eligibility requirements for the bonus will be paid the bonus in the December paycheck.