Clarification on a couple of issues related to the $1000/$2000 one-time Lump Sum Payment which is to be received in the July 20 paycheck:
IF RETIRING AT THE END OF JUNE:
- We have confirmed with OLR that members retiring June 30/July 1 are eligible for the Lump Sum Payment
- The payment will be paid in the July 20 check
TAXES AND THE LUMP SUM PAYMENT:
- The one-time Lump Sum Payment is a taxable event (on the Federal level, it is taxed as a "bonus", usually 25%).
- The Federal Income Tax Withholdings can be adjusted by changing your W-4 for the payperiod (and you would need to submit a follow-up W-4 to