Your Lump Sum
A link to the SRA Toolkit to help guide your choice.
You will receive your lump-sum payment in your November 30 paycheck. The lump-sum will be a multi-thousand dollar increase to your paycheck for one month. There are tax implications to such an increase and you have options you may want to consider.
If you do nothing, the lump sum will be subject to all the same tax withholding as your normal income. If you redirect your lump sum to your SRA retirement account, you can avoid federal and state income tax and only pay FICA taxes.
Please see the following chart for this year's Lump Sum Payment
|Lump Sum Payment||Lump Sum Less FICA|
The Benefits Office Can Answer You Questions
The Benefits Office will be hosting 3 Zoom meetings to answer questions from house officers.
Zoom Meeting ID: 772 2672 3813
Zoom Meeting ID: 790 5031 1783
Zoom Meeting ID: 722 7123 6316
Not redirecting your lump-sum?
If you do not want to redirect your lump sum to a retirement account, you may want to consider adjusting your W-4 allowances before your November paycheck. Doing so may help you avoid having too much money withheld by the IRS. Please use the Withholding Calculator on the IRS website to figure this out. If done right you can have more money in your pocket in November instead of a larger tax return in April. You can adjust your W-4 at any time in Wolverine Access. If you increase the number for withholding for November, remember to change it back in December. Each person's situation is different, please consult your tax professional before making any changes.