|Morgan County Schools|
|Bylaws & Policies|
6510.01 - EMPLOYEE PAY
The Board of Education has approved the number of pays for the school year as semi-monthly or twenty-four (24) pays per year maximum.
The Board shall defer a portion of the annual salary to be paid personnel employed less than twelve (12) months per year and pay the salary over the full year in pro-rata amounts over twelve (12) months for personnel electing to do so. The Internal Revenue Service (IRS) calls this practice "annualized compensation". Personnel not electing annualized compensation will receive their annual salary divided over the number of paychecks determined by their employment term.
Due to new regulations passed by the IRS, employees who receive annualized compensation must make a written election to do so; the written election must be made BEFORE the first day of the school year to work period of the 2008-2009 school year; the election may not be revoked during a school year except for extremely limited circumstances permitted by the IRS; and the written election shall stay in effect for all future years unless revoked or changed by the employee, and any such revocation or change must be made BEFORE the first day of the school year to which it applies. Because of a potential tax penalty, employees who do not make a written election to receive annualized compensation by the first employment day of the work period will NOT have their pay deferred or annualized. Those employees will receive their annual salary divided over the number of paychecks determined by their employment term.
The IRS regulations provide that, once an employee has made an election before the beginning of the school year, the election may NOT be revoked.
Personnel who start after the employment term begins for that class of employees will receive annualized compensation to be paid in pro-rata amounts over the remaining period of the year.
WV Code 18A-4-9
IRS Code 409(a)