Employees who work less than 12 months per year may be paid over 12 months. This type of compensation is identified by the Internal Revenue Service as “annualized compensation.”* Annualized compensation is an established and valued practice in Texas and in our school district. This notice shall serve as the required notice under IRS regulations that College Station ISD is exercising its unilateral election to pay salaries over a 12-month period as authorized by law, which will enable the District to annualize salaries paid to employees who work less than 12 months and to collect benefit contributions from employees over the summer months. This means that most employees who work less than 12 months during a school year will have salaries paid out over 12 months. (Annualized compensation is not applicable to employees who have not been paid on an annualized basis, including certain hourly employees with varying schedules, such as bus drivers.)

 

Please direct any inquiries you may have to the Personnel Department.

*Title 26, Code of Federal Regulations, Section 1.409A (a) (14)