Executive Branch employees will see a difference in their paycheck this week. The $300 lump sum payment will be included for applicable employees; as will longevity payments for applicable employees. The 1.5% raise in wages will begin to be included in the paycheck issued on December 27, 2013 for applicable employees.
We have heard from some concerned members that they are also seeing an increase in the taxes being deducted from their checks. You can expect a higher tax deduction – in dollars – due to the additional dollars you are receiving in your check. The pension deduction – in dollars – will also increase. This is because both your taxes and pension are calculated as a percentage of your pay. It is not due to a change in the tax rate you are paying. In the past, longevity payments were paid in a separate check and at a higher rate (percentage) of taxation. Now, the State, by paying the longevity payment, and this time the additional $300 associated with the new contract’s first raise, is applying your normal rate (percentage) of taxation. So although you are definitely going to see more dollars of taxation and pension contributions made from your paycheck, you should actually be receiving more take home dollars of your longevity payment and that $300 contract payment.
If you suspect there is an error in your paycheck, please reach out to your HR/payroll representatives.