State Accounting
Frequently Asked Questions
General
Q: When will my leave balances be paid?
A: You will receive your installment payments in August of each year, the percentage of which being determined by the program under which you terminated employment, as follows:
Early Out 3 |
| 30% on your final check in 2004 20% in August 2005 20% in August 2006 20% in August 2007 10% in August 2008 |
Q: How do I make an address change?
A: Click on the Change of Address Form on the Early Out Incentive menu. The form may be submitted electronically or printed and mailed.
Q: Can I receive my payment via direct deposit / EFT?
A: No. Direct deposit/EFT is not available for these payments. You will receive your annual installments in the form of a warrant, mailed to your home address.
Q: How do I contact Central Payroll with questions about this program?
A: Contact Central Payroll by email, phone 515-281-3976, fax 515-281-5277, or by mailing to:
Iowa Department of Administrative Services, State Accounting Enterprise
Attn: Jean McPherson, Central Payroll
Hoover State Office Building, 3rd Floor
1305 East Walnut, Des Moines, IA 50319
Please include mailing address, phone number, and e-mail address.
Q: Whom should I contact if I do not receive my payment by the end of August?
A: Please contact Central Payroll at the contact information shown in the previous question.
Q: Can I opt out of the early out incentive program by paying back the payment(s) I have received?
A: No. You cannot opt out of the early out incentive program by paying back any payments you have received. See your Agreement and Release Form for details.
Q: Can I switch from the early out incentive to a “normal retirement” and get the rest of my vacation and maximum of $2,000 in sick leave at one time?
A: No. The sick leave and vacation must be paid in 4 annual installments following your first payment, which was paid with your last regular payroll warrant. See your Agreement and Release Form for details.
Q: What correspondence will the State send me about the administration of this program?
A: You will receive a letter each July to confirm your current address, tax withholdings, beneficiary information, and payment information as recorded in our files. The letter will also provide information about the annual August payment and other pertinent administrative information. You will receive a Form W-2 and related correspondence each January related to payments in the previous calendar year.
Q: May I file a claim for unemployment compensation benefits if I participated in one of the Early Out Programs?
A: Yes. The Application and Release does not prohibit you from filing a claim for unemployment compensation benefits. You should be aware that the programs are voluntary and the State of Iowa does consider your participation to be totally voluntary. The State of Iowa, as your employer, is not prohibited from asserting a defense to your claim, should you file a claim for unemployment compensation benefits.
Taxability/Withholding
Q: How do I change the amounts I have withheld from my payment(s)?
A: Click on the “Federal/State of Iowa W4 Form” on the Early Out Incentive Menu. Mail the forms to:
Iowa Department of Administrative Services, State Accounting Enterprise
Attn: Jean McPherson, Central Payroll
Hoover State Office Building, 3rd Floor
1305 East Walnut, Des Moines, IA 50319
Q: How will the taxes deducted from my annual payment be calculated?
A: Both the federal and state income taxes will be calculated using the annual tax tables and the number of exemptions claimed on your W-4 forms.
Q: Are early out incentive payments reported on a W-2 or 1099?
A: The incentive payments will be reported to you on a W-2 or to beneficiaries, if applicable, on a 1099R. You can expect to receive this form by January 31.
Q: Whom should I contact if I do not receive my W2 or 1099 by January 31?
A: Contact Jean McPherson at 515-281-3976 or through email at: Central Payroll.
Q: Are the payments I will receive from the early out incentive program subject to FICA withholding?A: Yes, payments after you have left employment are still subject to FICA withholding since they are considered a payment of “supplemental wages” based on benefits you earned as an employee.
Beneficiaries
Q: How do I make a change in beneficiaries or contingent beneficiaries?
A: Click on the “Beneficiary Designation Form” on the Early Out Incentive menu and print the form. The form must be signed and mailed to the address noted on the form. Please note that a witness signature is required.
Q: In the event of my death, how will the remaining payments be made?
A: The remaining payments will be made to the designated beneficiary(s) in the same annual installments.
Q: Who should be contacted at the State in the event of my death?
A: Contact Jean McPherson at 515-281-3976.
Q: Are payments made to beneficiaries taxable?
A: Yes. They will be reported to the beneficiary on a 1099R.
Q: Are taxes/FICA withheld on payments to beneficiaries?
A: No. The State will not withhold taxes or FICA on payments to beneficiaries.
Q: Will payments to beneficiaries be reported on a document similar to a W-2 or 1099?
A: Payments to beneficiaries will be reported on a 1099R.
Subsequent Employment
Q: Can I come back to work with the State at a later time?
A: If you left state employment under the terms of any of these programs, you may ONLY return to work as a State employee in a TEMPORARY position or as an elected official. The maximum number of hours that a temporary employee can work in a fiscal year is 780. Temporary employment status does not entitle the employee to any vacation, sick leave, or insurance benefits.
Q: Can I work for a contractor, or as a contractor, who does business with the State? Will this employment have any effect on my early out incentive payments?
A: You may do business with the State in any capacity as long as you are not a permanent employee. This will have no impact on your payments.
Social Security
Q: I am qualified to retire and draw Social Security benefits. If the payments I receive under the Early Out Incentive Program are subject to FICA withholding, do they also count against my earnings limit (the amount of money I can earn in a year before my social security benefits are reduced)?
A: The amount of income you can earn each year before a reduction in benefits can vary. These earnings limits are adjusted annually. The payments made under the Early Out Incentive Programs in the years subsequent to the wages being earned are NOT considered earnings in calculating the annual earning limit. The State of Iowa will furnish information to the Social Security Administration each year to assure these payments are not considered in the annual earning limitation calculations.
Q: How will the federal government receive notice that these payouts are not subject to the social security earning limitation?
A: The Department of Administrative Services, SAE, Centralized Payroll will file a report each year with the Social Security Administration identifying the early out payment amounts, none of which are not subject to the earning limitation.