This memo serves to clarify information released by the Company which the Union conveyed in a memo sent to the members on Friday, October 29, 2010, regarding signing bonus/retroactive pay and Income Tax and/or 401(k) withholdings. Please note that the regular bi-monthly pay dates in November are the 12th and the 26th. Should the contract be ratified the checks for retroactive pay and signing bonus will be distributed on November 15, 2010. Please review the following deadlines to make changes to Income Tax and/or 401(k) withholdings:
401(k) Contributions
► November 5, 2010 (Friday): Deadline for employees to make any changes regarding their 401(k) contribution withholding amounts. This is the deadline for the change to affect the check containing your retroactive/signing bonus pay.
● If an employee does make changes to his 401(k) withholdings amount, that change will affect not only the lump sum retro and bonus payments but also his regular November 12, 2010 paycheck.
● If an employee who already has a 401(k) withholding election on file with the Company does not make any adjustments to that election the percentage amount reflected in his election on file will be deducted from his lump sum retro and bonus checks and deposited into his 401(k) account.
Note: Employees wishing to contribute a different 401(k) amount than currently on file must take into account that both your normal November 12, 2010 paycheck and your November 15, 2010 retroactive/signing bonus check will be affected. You must determine the total amount from all payments that you want to be contributed and adjust your 401(k) withholding percentages by the November 5, 2010 deadline accordingly.
Income Tax Withholdings
► November 8, 2010 (Monday): The Company will run its regular payroll for the November 12, 2010 checks on Monday night, November 8, 2010.
● If an employee makes any tax withholding changes/adjustments on or before November 8, 2010, those changes will affect not only his lump sum and bonus checks but also his regular paycheck too. If an employee does not want to change his withholdings for his regular paycheck, and only wants to make withholding adjustments for his lump sum retro and bonus checks, he should not make any changes on or before November 8, 2010, but must instead make the change on November 9, 2010.
● If an employee makes a tax withholdings change/adjustment on November 9, 2010 for the lump sum retro and bonus checks, that change/adjustment will also be reflected in the November 26, 2010 and all subsequent payrolls. To avoid this result, an employee who wants to go back to his “regular” tax withholding exemption MUST affirmatively go back and make that change/adjustment any time during the period from November 10, 2010 to November 21, 2010.
Finally, if you have any questions concerning these deadlines, contact the Company’s payroll department.