We believe that the board's new payroll software, in its infinite wisdom, has calculated taxes by pro-rating "monthly" salaries. As such, we paid slightly less tax from January to May when our 8% pay was pro-rated over 12 months to 96% percent of our actual annual salary. This 4% discrepancy meant that less taxes were taken during the period.
The inline image below contains information about June and YTD income and tax rates for 2009 and 2010 as a comparison.
After the lesser deductions from January to May and the over deduction in June, the total overage on the tax charge from 2009 to 2010 was 1% of gross. As in the image above, for a CAT4 max teacher who has made $53,528.40 to date this year, a 1% difference is $535.28. We would hope that the board would remit somewhere close to this amount (pro-rated depending on grid placement) as soon as possible with the understanding it will be scaled back through a smoothed tax rate in the fall.
We await to hear confirmation of their plans, but are optimistic in ongoing discussions, we can get resolution on this issue ASAP. Rest assured that we will be trying to convince the board to get this money into your bank accounts as early as possible.
Please come back to the website for information as we get it.
In Federation,
Anthony Marco
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