Shown below is one example of an employee pay stub. This key gives a brief explanation of what various deductions represent.
If you have specific questions about your pay, contact either Lisa Limani, ext. 1210, Sharon Schlupp, ext. 1216 or Eloi Richardson, ext. 1206.
ABCO: Public Employees Federal Credit Union. ABCO is no longer handled as a deduction; instead the payments into the credit union are made as a direct deposit. Employees can have checks split into two different direct deposits, using ABCO as one deposit and checking or savings account as the other. ABCO offers a variety of services, including checking and savings accounts, loans, VISA cards, etc. This is an excellent way for employees to set aside money for the summer months.
Base Pay: Represents gross pay before deductions.
Tax Shelter: There are several approved tax shelters. See attached Annuity list.
Federal Tax: Federal Income Tax computed based on number of exemptions claimed on W-4 form.
Contributory Insurance: The insurance portion of the Teachers’ Pension and Annuity Fund and Public Employees’ Retirement System pension plans. You are required to pay this portion for the first 12 months of membership in the pension. After that time, you may cancel your coverage. Members who pay for the contributory insurance receive a death benefit of 3-1/2 times current salary, those who only have the non-contributory portion receive only 1- ½ times current salary. THIS IS CHEAP INSURANCE – THINK TWICE BEFORE DROPPING IT!
Extra: Extra pay is for stipends, class coverage, detention, etc., is reflected here.
Taxable: Represents taxable income after tax shelter and pension deductions.
FICA: Social Security Tax.
NJEA-T: Union Dues
Dental: The Board provides coverage for employees only. Payroll deductions are made for dependent coverage. Current rates for coverage are available in the business office, Charlene Senachai, ext. 1204.
HBCONT: Employees’ contributions would be at the higher of (1) 1.5% of their annual salary or (2) a percentage of the premiums for the medical and prescription coverage(s) selected, calculated based on their annual salary. Contact Charlene Senachai x1204.
Less: Represents any deductions from pay for charge days, i.e., illness beyond available sick time, extra personal days.
FRINGE: Imputed income is the taxable value of the contributory and non-contributory component of the pension. The Internal Revenue Service classifies all life insurance coverage over $50,000 as a fringe benefit subject to taxation. The amount of life insurance is not taxable but rather the premium required to pay for the life insurance coverage is taxable. The amount of this tax is based is a formula based on age and years of service.
NJUC: New Jersey Unemployment Compensation. This deduction is required by law. It goes into a separate account to be paid out for Bordentown Regional Unemployment claims only.
Medicare: Deduction required by law, regardless of age of employee and eligibility to receive Medicare. If you are working, you must pay this. This is the second half of the FICA requirement.
F.L.I: Family Leave Insurance – This program is financed by employee contributions. The state requires employers to deduct the contributions from employee wages. The taxable wage base for Family Leave Insurance benefits is the same as the taxable wage base for Unemployment and Temporary Disability Insurance. For additional information: www.nj.gov/labor
FICA Wage: Gross pay plus imputed income.
NJ Tax: State of New Jersey Income Tax.
Pension Loan: Active contributing members are eligible to borrow up to one-half of their pension contributions twice per year. The Pension Bureau can advise you of the amount you can borrow and the repayment schedule. Repayments are made through a series of deductions from your pay. Forms and information are available in the business office.
Back Pension: Pension enrollments may not be fully processed before first pay checks are issued. Once all forms are completed, back pension deductions are made until the pension obligation is satisfied.
Arrears: This deduction is used when an employee is buying back former service time into the current pension system.
Prudential Insurance: Deduction for private disability insurance. The Board of Education does not participate in the State Disability Plan. Employees who need disability insurance are urged to sign up for the NJEA endorsed plan. Rates depend upon plan. Contact your building representative or the business office for information.
AFLAC: Is another choice of disability insurance. Refer to Annuity List for additional details or contact the business office.
Other Deductions: From time to time, an individual employee may have a situation where deductions from pay are ordered by the Court to satisfy arrears child support, legal or IRS issues. We always notify an employee before any deduction is made from his or her payroll check.