If you are a faculty or staff member scheduled to receive a bonus on your December 1, 2022 paycheck, the bonus will be included by default in your take home pay. Because your pay on December 1, 2022 will be larger than usual due to the bonus, you may instead request to defer a lump sum from your paycheck to a retirement savings plan on the date your bonus is paid.
As a reminder, any lump sum amount you defer to a retirement savings plan counts toward the 2022 annual savings limit for that plan, along with any regular paycheck contributions you have made during 2022. For information on this topic, see retirement tax-savings limits.
Option 1: Take no action and your regular pay plus your bonus are included in your December 1 paycheck
On your pay stub, your bonus amount will show on a separate line from your regular earnings. Bonus payments are taxed at a supplemental tax rate, as required by law.
Option 2: Defer a lump sum from your December 1 paycheck to the VCU 403(b) Tax Deferred Annuity Plan (TDA)
To defer a lump sum from your December 1 paycheck, complete a Salary Reduction Agreement (Lump Sum). VCU Payroll must receive your Salary Reduction Agreement no later than Monday, November 14. The one time deferral amount you indicate will be added to any previously paycheck deferral scheduled to be applied to your December 1 paycheck.
If you do not participate in the TDA yet, you’ll also need to open a TDA account online with either TIAA (www.tiaa.org/vcu) or Fidelity Investments (www.netbenefits.com/vcu), no later than November 30.
Option 3: Defer a lump sum from your December 1 paycheck to the Commonwealth of Virginia 457 Deferred Compensation Plan (DCP)
To defer a lump sum from your December 1 paycheck, complete the DCP One-Time Deferral Form. VCU Payroll must receive your DCP one-time deferral form no later than Monday, November 14. If you do not already have a DCP account, you will need to open an account online at www.varetirement.org/dcp.html, or by calling 1-877-327-5261 on or before November 30.
Please note these important reminders:
- By default, your bonus will be included in your December 1 paycheck with no action required from you. Once your bonus is included in your paycheck, it cannot be returned and deferred to a retirement plan. There are no extensions available for deferral requests. VCU Payroll must receive all deferral requests no later than Monday, November 14.
- When you make paycheck deferrals to a retirement savings plan, your regular pay is deferred first. You cannot choose to take home all of your regular pay and defer only your bonus. If your lump sum deferral amount is less than your regular pay, the entire amount will be deferred from your regular pay. If your lump sum deferral amount is more than your regular pay, then your regular pay plus part of, or all of, your bonus will be deferred depending upon the deferral amount you request. Because regular pay is deferred first, the only way to defer your entire bonus is to defer your entire paycheck on the date the bonus is included.
- Any amount of bonus pay included in your paycheck will be taxed at the supplemental rate required by law.
Return deferral forms to VCU Payroll
In person: HR Welcome Center, Lindsey House, 600 W. Franklin St. (Note: Belvidere St. Entrance)
Fax: (804) 828-3200
Questions about the TDA or DCP?
Use the "Make a Request" function at https://go.vcu.edu/hrsupport to request HR support.
Phone: (804) 828-0177