UConn-AAUP Update: May 26, 2022
Information on Negotiated Salary Increases
Here is the latest from the Comptroller’s Office:
- The June 17, 2022 pay date is the date for the prospective adjustment of pay to reflect the GWI and the Performance-based Award (4.5%) in Year 1 (August 23, 2021 – August 22, 2022) and the $2500 lump.
- The Retro pay will not happen until the July 15, 2022 pay date. (This is the 4.5% increase from August 23, 2021 – June 17, 2022.)
- The Year 2 GWI (3.5%) will be in effect as of August 23, 2022.
- The second lump sum ($1,000) will be in the August 12, 2022 pay date.
The Comptroller’s Office has also reported something new about withholding taxes. Per IRS regulation, the lump sums and retro will be taxed at 22% federal withholding from the relevant paycheck. That doesn’t affect the ultimate taxes owed or refund due when tax returns are filed. It is just a required withholding rate. So, the old trick of adjusting W-4s to lower withholding would have much less impact. It would lower taxes only on the normal biweekly amount included in that paycheck — no impact on the amount taken from lump sum or retro. Comptroller’s office says no way around that as it is now a federal rule.
Mary Ellen Junda, President
Jeffrey Ogbar, Executive Vice President
Michael Bailey, Executive Director