FAQ - HCBOE One-time Supplement Distribution - January 2024

The total cost of the recommendation is $7.0 million, with $4.14 million in funding provided by the state covering 3,718 employees from staffing categories identified within the QBE formula. The remaining cost to extend the supplement is $2.86 million and will be satisfied through use of general funds, and would  cover more than 3,000 employees and critically embedded contracted staff. 

No, TRS has determined that this income is not normal, earnable compensation based on state law so both the employee and employer deductions are not applicable.  

Yes. Per IRS Publication 15 (Circular E), supplements paid concurrent with an employee’s wages are taxed at an individual’s filing status and W-4/G-4 withholdings on file.  Additionally, Social Security tax in the amount of 6.2% and Medicare tax in the amount of 1.45% are also required deductions. 

Employees will receive the supplement as an addition to their regular January pay on Wednesday, January 24, 2024. Timelines for disbursements for contracted staff may vary and will be delivered via the service providers payroll processes.    

Yes, however, Active Retirees are restricted by TRS rules to 49% of the supplement amount and would receive $490 ($1,000 x 49%).