New IRS regulation

Discussion in 'General Education' started by ValinFW, Aug 1, 2007.

  1. ValinFW

    ValinFW Comrade

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    I skimmed through the thread titles and didn't see anything about this, so forgive me if it's already been posted.

    I got an email from one of the professional organizations in TX today about a new IRS reg. that will increase our taxes if we get paid over 12 months, but work fewer than 12. Since most of us are probably in this boat, I'm posting a link.

    http://www.tcta.org/legal/laws/IRSregulations.htm
     
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  3. mommee03

    mommee03 Companion

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    great....they give us the raise only to take it away....thanks for the site i'm going to check it out
     
  4. Caesar753

    Caesar753 Multitudinous

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    Here we don't have the option to get paid over a 10-month period--we have to get paid over 12 months.

    I'm irritated!
     
  5. mommee03

    mommee03 Companion

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    same with my district... The sad thing is my district has not sent anything about signing the 'deferment' form to avoid this tax :mad:
     
  6. silver rain

    silver rain Comrade

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    Thanks for the info!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
     
  7. loves2teach

    loves2teach Enthusiast

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    Is this just in Texas? Or is it nationwide? TIA :) Don't want to ask at school & look silly.
     
  8. mommee03

    mommee03 Companion

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    I think its nationwide, this is coming from the IRS. Check out the link posted by ValinFW it's pretty detailed. It tells you what you need to do in order to avoid it and everything. That way when you contact your school you know exactly what to ask for.
     
  9. swansong1

    swansong1 Virtuoso

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    Thanks for the info. I called the head of payroll for my district to ask about it since we go back next week. If I have to sign a form, I would like to know about it.
     
  10. silver rain

    silver rain Comrade

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  11. runsw/scissors

    runsw/scissors Phenom

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    I just printed it out and am going to really look over this. Thanks!
     
  12. paperheart

    paperheart Groupie

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    I just called my district and we will be filling out the form the first day back. The person I talked to said they are getting a lot of calls about it.

    This is absolutely ridiculous and is a slap in the face to teachers! It seems like unnecessary paperwork will clog the system. Stupid idea. What is the point?
     
  13. cheeryteacher

    cheeryteacher Enthusiast

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    I think it is just Texas. All of the information provided in this thread is specific to Texas. Probably still better to ask, better safe than sorry.
     
  14. FutureFLTeacher

    FutureFLTeacher Companion

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    Wow, that stinks! :eek:

    We have the option of getting paid over ten or twelve months...I'm sticking with the ten right now since I'm a miser and squirrel away money to begin with...LOL
     
  15. paperheart

    paperheart Groupie

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    I wish we had the option to be paid for 10 months and not 12 months. I would rather invest the "excess" money each month while I wait for the summer. Its sort of like lending our money to the goverment so they can make the interest off of it instead of us. We should at least have the option.
     
  16. Annie227

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    Is this in Virginia too? I noticed all the links were Texas specific.
     
  17. ecsmom

    ecsmom Habitué

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    I've noticed this as well. I printed out all of the info for my principal.
    She hadn't heard anything about it either. No info on TEA as far as I can tell. I just hope we are already covered in TN.
     
  18. WindyCityGal606

    WindyCityGal606 Enthusiast

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    They took away our option to be paid in 10 vs 12 months a few years ago. We only can get paid over 12 months. I will have to call payroll tomorrow to see if I need to sign anything. This is very confusing!!
     
  19. Emma35

    Emma35 Connoisseur

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    I did a google search for this and did find information regarding this. It seems like it would affect all states. I wanted to post a link to the site I read earlier but now I can't find it. If anyone knows anything else about this please post. If I find the link again I'll post it.
     
  20. ValinFW

    ValinFW Comrade

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    Since it's an IRS regulation, I'm sure it's nationwide. The links provided are specific to TX, because they came from teacher associations in TX. It also could be applied to professions other than teaching.
     
  21. cheeryteacher

    cheeryteacher Enthusiast

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    Yeah, I was wrong it is nation wide. I am sending an email to my former co-workers. We need to spread the word. Has anyone started back and not signed a form? Since they just came out with this rule will there be any lee way?
     
  22. mommee03

    mommee03 Companion

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    From what my HR has told us...you can fill out 'paperwork to accept defered payments (or something like that)' to avoid having to pay the tax or your school can classify you as an employee paid annually instead to avoid the tax.

    I think the paperwork is for you to 'agree' to have defered payments or something. I would check with your HR department, I'm sure they will be able to help anyone with this issue.
     
  23. Emma35

    Emma35 Connoisseur

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    Is it just me or does all of this sound confusing to everyone???
     
  24. Master Pre-K

    Master Pre-K Virtuoso

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    I don't know, it sounds like we will get uh...scr*#ed one way or the other!

    I still owe my state back taxes from some mix up in 1997! Every time I get some little stinky refund, they take it! I had over paid them by mistake, and tried to get it back. You know that they took that!? If I kept my mouth shut, it would have be an overpayment for 2007! I knew something was wrong when I get mail from the state or IRS and it's not blue or yellow....the color of checks!!!

    One year I did not get called back as a TA. I knew I would have a hassle getting unemployment. They have it in for teachers, with this special clause just for educational employees! It clearly says, we are 'seasonal workers', and we are 'guaranteed a job every year!' This is not true! And I tell you, I had to get the principal, all kinds of letters from the district, and a test tube of blood before they finally gave me my unemployment money!!! :(
     
  25. Miss_J

    Miss_J Habitué

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    I'm lost! I called the president of my union (he is a family friend) and he has not heard a word about this!:confused:
     
  26. uclalum

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    I'm confused too! Nothings ever easy!
     
  27. Master Pre-K

    Master Pre-K Virtuoso

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    I will probably be some ominous piece of paper stuck in our mailboxes, that we will throw away.

    Now get this, my university says we have to give them our bank account number in order to get our student loan checks! Sent us this fancy email, making it look all cute and tempting. Student accounts says, NO, it is manadatory! How can you force me to give you my bank account number! I know that once you have my account number, any time you mess up, you can politely clean out my bank account and say whoops, sorry, we over paid you! This is nonsense! what if, for some odd reason a student did have a bank account. What if we cashed checks at the currency exchange, like the majority of people who don't have banks do regularly. Uh, if we had a bank account, we wouldn't need financial aid!!! :(
     
  28. mommee03

    mommee03 Companion

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    Maybe you should tell them you don't have an account. They should be able to issue a papercheck or a paycard. My school uses paycards for everything. I don't think they can 'make' you give them your personal info like that.
     
  29. Master Pre-K

    Master Pre-K Virtuoso

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    Oh believe me I plan to go back there tomorrow, I am not calling, I am not standing for this!!! They claim they have too many checks to issue, this is faster, safer..whatever!! I say it is illegal and they have more than enough of my personal information. bank accounts, I tell you, if it comes down to this, I will give them a Christmas club with exactly $50 in it and no more. And that way, if they try to take some money out, they can't because the bank won't allow them to zero out the account, like a checking account, getting fees all over the place! OOOHHHH this makes me so mad!
     
  30. WindyCityGal606

    WindyCityGal606 Enthusiast

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    About the IRS issue, has anyone found any new info as of today?
    My HR opens at 9 today. I have to go work out but will call when I get back.
     
  31. Mommy2wad

    Mommy2wad Rookie

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    MY school district has already sent a form out to be signed and returned. The kicker is that it has to be signed and returned before the teachers report back to school in two weeks. I wonder how it affects those teachers who have already reported back to school. I think it is ridiculous that the IRS would choose to do this teachers, but one of my teammates pointed out that teachers do make up one of the largest groups of working individuals.
     
  32. Amers

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    Not to sound silly, but does "report back to school" mean when the students come back or when we start meetings? We decided this was a nationwide thing, right? I'm a first year teacher, and I start my meetings tomorrow. I will be soooo angry if I have to pay more taxes. I'm already broke!! :mad:
     
  33. Mommy2wad

    Mommy2wad Rookie

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    We were told that we had to sign the paperwork before we (just the teachers go back). It could be they told us this just to get everyone on the ball and get it signed and returned. And, yes, this is an IRS regulation, so I would assume it is national.
     
  34. Amers

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    This article was posted on the same page as the one silver rain posted last month:

    http://texas.teachers.net/chatboard/topic11613/8.07.07.07.24.38.html

    This article says the extra tax does not apply to the upcoming school year. The article posted by the OP says it does apply to the upcoming school year.....:huh: What a mess. I guess I'll just ask about it at school tomorrow. Better safe than sorry.
     
  35. runsw/scissors

    runsw/scissors Phenom

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    I told the financial manager at my school about this and said I would make a copy for her. She has promised to look it over and see what can be done.

    "Annualized Compensation refers to compenasation earned in a period of time shorter than one year, but paid over a 12 month period."

    I don't know how Congressional members recieve their pay, but I do know that their fiscal year is October to September. And just how many months of that 12 month period is Congress NOT in session???
     
  36. Master Pre-K

    Master Pre-K Virtuoso

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    our state has not passed their budget. this means soon paychecks will not be issued for state employees! and they are telling them, that they still must report to work!

    when I was in CA, and worked for a univ. we had the same issue. They told us that my once-a-month-check I so dearly treasured might come as a blank on one half, and a 'warrant' (yep, that's what they call them!) payable to me as an I.O.U.!!!!

    in the meantime...this makes the gov. look bad, and will threaten his Health Care for all Kids, and Free Pre-K for All. Because the news last night states he could be forced out, like they did with Davis in CA!! That's how Arrrrnold got the job!!

    Aren't we having one heck of a summer!??
     
  37. Amers

    Amers Cohort

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    So the govt can pay US with an IOU, but if we tried to pay THEM with one......Sorry, I'm irritated by this whole thing. Since I can't type more without using a four letter word, I'll just stop. :down: :whistle:
     
  38. novalyne

    novalyne Rookie

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    I just got an e-mail from my teacher association that, due to outcry over this last-minute notification and confusion, the IRS has decided that this will NOT take effect this year:

    IRS Decides New Rule Will Not Affect Salaries in Upcoming School Year

    You should have received an email recently regarding new regulations affecting school employees who work less than the full calendar year but who are paid over the full year. In response to ATPE efforts, your and other educators’ questions, the IRS today released new information regarding the regulations relating to deferred compensation which both clarifies its interpretation of the regulations and provides employees and school districts additional time to comply with the new regulations.

    The IRS press release, which is printed below, indicates that a district may comply with the regulation by either providing the staff with an individual deferred compensation election form or by having or establishing a written policy providing for deferred compensation. The IRS has also announced that the new regulation will not be applied until the 2008-09 school year, allowing school districts and employees time to comply with the new requirements.


    Also, here is a link to the IRS press release that contains more information: http://www.irs.gov/newsroom/article/0,,id=172884,00.html
     
  39. ValinFW

    ValinFW Comrade

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  40. Amers

    Amers Cohort

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    Thanks for the update.
     
  41. Master Pre-K

    Master Pre-K Virtuoso

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    Thanks, that does help me quite a bit. But, I am still upset...and I am sorry to hijack, but now I find out my university not only is forcing me to give them an account number for my student loan check, the also are forcing everyone who is full time to take their student insurance. :unsure:

    This is just an outrage! I overhead a clerk telling another student this! You can opt out with a waiver, if you have proof of insurance. If not, they will automatically charge your account for the full year...$1,590! :eek:hmy:

    and it isn't Blue Cross or Humana, or somebody else I know...it's some no-name company...everything is online. No monthly payments, just semester for the year including summer. But the school decided to charge everyone for the year, so again we don't even have a choice about that!!! I just feel like my life has been totally screwed this week!!! :mad:
     

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