**DKA - PAYROLL DEFERRALS** **Last Updated Date:** 02/25/2014 **Adoption Date:** 05/27/2008 Teachers, paraprofessionals, assistant teachers, educational therapeutic assistants, and certain administrators can elect to spread their compensation earned over the ten month school year to a twelve month payroll schedule (26 equal payments).  This twelve month pay schedule is voluntary for these staff members and is provided merely to assist them with financial planning. In order to be placed on a twelve month pay schedule, the employee must notify the School Business Office in writing (using the 409A Election Form) before the first payroll submittal in any school year (i.e. on or about August 15th each year).  Once the election to twelve months is made by the employee, it cannot be revoked before the end of that twenty-six pay schedule. Once an employee elects a pay cycle, it will remain in effect for the duration of the employee’s employment with the South Hadley School Department, unless the employee submits a new 409A Election Form by the annual deadline. Should an employee not submit a 409A Election Form, or submit it after the deadline each August, the employee will be paid over a school year pay schedule (21 pays for teachers, 22 pays for all others). New employees hired after the start of the school year may choose to submit a 409A Election Form prior to their first payroll.  Their pay will be prorated equally over the remainder of that year’s twenty-six pay cycle. **Policy References:** IRS Code, 26 USC Section 409A