Setting Up a Board Paid Annuity

The following outlines the steps involved when the board agrees to pay an annuity on the employee’s behalf and this payment should be treated as wages - and can be considered for retirement if desired. These steps may vary based on what has been negotiated and the specifics of each agreement. Please reach out to your tax advisor for any tax related questions.

Create a Position for the board paid annuity. If retirement is to be withheld on the payment, select the appropriate retirement option from the Retirement Code dropdown. If retirement is not to be withheld, se the Retirement Code dropdown option to None.
Create a Compensation for the board paid annuity. Depending on how the annuity should be paid will determine how the Compensation should be set up. Fields to pay particular attention to are:
- Job Calendar
- Compensation Start Date
- Compensation Stop Date
- Pay Plan
- Pay Unit
- Unit Amount
- Retirement Hours
- Hours In Day
- Contract Work Days
- Contract Amount
- Contract Obligation
- Pays In Contract
- Stretch Pay
- Calendar Start Date
Go to Core>Payee and verify a Payee for the Board of Education exists. If a Board of Education Payee does not, one will need to be created.
Go to Core>Configuration and verify an appropriate Payroll Item Configuration exists. If an appropriate Payroll Item Configuration does not, one will need to be created. The Payee should be the Board of Education.
Go to Core>Payroll Item and add the record for the employee. Depending on how the annuity should be paid will determine how the Payroll Item should be set up. Fields to pay particular attention to are:
- Rate Type
- Pay Cycle
- Employee Rate
- Employee Withholding Max>Deduct Max Type
- Employee Withholding Max>Max Amount
- Employee Withholding Max>Specific Date
Once the payroll has been posted, the payment to send to the annuity company will need to be processed out of USAS using a PO>Disbursement.