The SLFR Funds provide substantial flexibility for each government to meet local needsincluding support for households and individuals hardest hit by the crisis. But a memo to the general counsel of the Florida Department of Education says the checks could be considered qualified disaster relief payments rather than bonuses. They have had to make so many adjustments and have worked so hard to make sure every child has a chance to learn. (added November 17, 2021), Q14: We are a utility company that uses SLFR Funds to pay overdue utility balances on behalf of individuals. His exceptional leadership and bold vision has taken Floridas minimum teacher salaries to an average of $46,000, and his focus on celebrating and elevating our educators is unparalleled. Thanks to the tireless efforts of our teachers and school leaders Florida succeeded where so many other states failed. I applaud Floridas teachers for stepping up and giving students the ability to learn in-person, from the classroom. The IRS is aware of questions involving special tax refunds or payments made by certain states related to the pandemic and its associated consequences in 2022. While this appropriation is limited to child care/early learning instructors, you are encouraged to use a portion of your Phase V grants and future grants to ensure that these valued staff members receive the compensation and resources they need and deserve. First, these payments are provided as qualified disaster relief payments made to reimburse reasonable and necessary personal, family, living, and funeral expenses incurred as a result of the COVID-19 pandemic and in order to promote the general welfare. An official website of the United States Government. Payments from the following states in 2022 fall in this category and will be excluded from income for federal tax purposes unless the recipient received a tax Determining whether payments qualify for these exceptions is a complex fact intensive inquiry that depends on a number of considerations. As of writing, these payments dont extend to pre-K educators, but this may change in the near future. Although many workers will be covered by the state's regular unemployment compensation program, those not covered may apply for Disaster Unemployment Assistance (DUA). If I receive such a payment, must I include the amount in my gross income? Governor DeSantis held the event at Lakewood Elementary School in Pinellas County. Payments from the following states in 2022 fall in this category and will be excluded from income for federal tax purposes unless the recipient received a tax benefit in the year the taxes were deducted. Because these FAQs have not been published in the Internal Revenue Bulletin, they will not be relied on or used by the IRS to resolve a case. Those who are in line to receive the payment do not need to do anything, AS reports. The law also requires that any money left in the disaster relief payment fund at the close of the 2022-2023 fiscal year be returned to the General Fund. The payment is available to an eligible individual after he or she completes four weeks of paid employment. If you are performing services as an employee, the premium pay is also generally considered wages and is subject to withholding of applicable taxes. This bonus is so well deserved, and along with an increase in our teacher salary increase allocation, demonstrates our commitment to Florida teachers and the service they provide to our state. WebFederal relief. Educators Eligible for Disaster Relief Funds, Executive Office of Governor Ron DeSantis. Principals employed by a district or a charter school that serves PK-12 students as of June 2, 2021, or on the last day of school. (added November 17, 2021), Q5: My employer received a grant from my state/local government to be used to pay new employees a cash bonus. I would like to thank Governor DeSantis and Speaker Sprowls for their tireless leadership in securing this well-deserved $1,000 bonus for the heroes in Floridas classrooms., Executive Office of Governor Ron DeSantis. Employers generally must withhold federal income tax as well as social security tax and Medicare tax from employees' wages. The application for the first qualified disaster relief payment is CLOSED. A6: Yes. Full-time K-12 classroom teachers employed in a district or at a charter school as of June 2, 2021, or on the last day of school; Certified prekindergarten teachers employed in a district or at a charter school as of June 2, 2021, or on the last day of school, and who are funded by the Florida Education Finance Plan (FEFP); and. Instead, contact this office by phone or in writing. The information below pertains to Floridas PK-12 educator disaster relief payments. If I pay such a cash bonus to my employees, must I withhold income and employment taxes on that payment? A8: No. To assist taxpayers who have received these payments file their returns in a timely fashion, the IRS is providing the additional information below. Having a world-class teacher who unconditionally loves their students in the front of every classroom is the most effective way to meet the individual needs of students of every background, said Commissioner Richard Corcoran. [2] Illinois and New York issued multiple payments and in each case one of the payments was a refund of taxes, which should be treated as noted above, and one of the payments is in the category of disaster relief payment. Each qualifying family receives a flat amount under the program. The payment is intended to assist with childcare costs resulting from the COVID-19 pandemic. Teachers in some states have received stimulus checks worth up to $1,000 as lawmakers wanted to recognize their work during the Covid-19 pandemic Credit: Getty. While the FAQ document will help to provide important information, there are a couple of areas it might be helpful to explain in this email. Using federal funds, both Georgia and Tennessee offered $1,000 bonuses to full-time teachers and $500 to part-time teachers. However, payments are not treated as qualified disaster relief payments if the payments are in the nature of compensation for services performed by the individual. A1: Yes, you must include the payment in gross income as compensation for services. Additionally, payments made to or for the benefit of an individual are not treated as qualified disaster relief payments to the extent the expense of the individual compensated by such payment is otherwise compensated for by insurance or otherwise. (Employers may also have to pay federal unemployment tax on the wages.) (added November 17, 2021), Q7: My state/local government is using SLFR Funds to provide a direct cash transfer to families. These heroes are the backbone of our communities and today the Governor sent a clear message that Florida loves and appreciates their hard work and dedication. These investments include $550 million to continue elevating minimum teacher salaries, as well as $215 million to provide all of Floridas eligible public school principals and teachers with $1,000 disaster relief payments. A qualified disaster relief payment does not constitute wages subject to income tax withholding and social security tax. WASHINGTON The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022. FLORIDA, USA If youre a qualifying teacher or first responder you shouldve received your $1,000 pandemic bonus check by now. For these individuals, state payments will not be included for federal tax purposes if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit. Similarly, if an FAQ turns out to be an inaccurate statement of the law as applied to a particular taxpayer's case, the law will control the taxpayer's tax liability. Rather, the payment is taxable as compensation income. In this case, because the payment is not income, no Form 1099-MISC or other information return is required to be filed with the IRS or furnished to the beneficiary. We have to remember that Florida has millions of highly vulnerable students and they have been the students most at risk the entirety of the time. Michigan also made $500 hazard pay grants available to teachers. In determining the amount of federal income tax to withhold from employees' wages, the employer should review the procedures in section 7 of Publication 15 to determine the amount of federal income tax to withhold from cash bonuses. Almost 177,000 Disaster Relief Payments of up to $1,000 will be distributed to Floridas educators in recognition of their hard work to educate students in the 2020-2021 school year. In this case, because the payment is not income, no Form 1099-MISC or other information return is required to be filed with the IRS or furnished to the recipient. Full-time K-12 classroom teachers employed in a district or at a charter school as of June 2, 2021, or on the last day of school; Certified prekindergarten teachers employed in a district or at a charter school as of June 2, 2021, or on the last day of school, and who are funded by the Florida Education Finance Plan (FEFP); and. The state of Maine is sending its residents who worked during the pandemic a one-time disaster relief payment of $285. (added November 17, 2021), Q12: We are a state/local government that uses SLFR Funds to pay utility bills on behalf of individuals. (added November 17, 2021), Q6: I am an employer who received a grant from my state/local government to be used to pay new employees a cash bonus. A10: No. The VERIFY team works to separate fact from fiction so that you can understand what is true and false. More than 75,000 instructors received a $1,000 check in the In general, individuals must include in gross income any payment or accession to wealth from any source unless an exclusion applies. Directors will complete the application on behalf of the instructors in their programs instructors do not apply directly for payments. In addition to increases in funds available specifically for teacher salary increases, I hope these bonuses will demonstrate just how much our state appreciates and values the contributions of Floridas teachers., During this pandemic, we were reminded of the importance of Floridas teachers to our children,said Florida House Speaker Chris Sprowls. WebFlorida ranks 43 rd in the nation in per student funding for education, 49 th in the nation in teacher pay and nearly half of all K-12 paraprofessionals makes less than $25,000 a year. While other states kept their schools closed, Florida opened them up and allowed students to return to normalcy. Part-time teachers can receive up to $500. Please consider subscribing to our daily newsletter, text alerts and our YouTube channel. If my employer pays me such a cash bonus, must I include the amount in my gross income? Will teachers, first responders owe taxes on their $1,000 COVID-19 bonuses? At the event, Governor DeSantis recognized Brittany Duquaine and Lynn Price as outstanding educators at the school who have contributed to the schools incredible turnaround. If you do not receive an invite by Wednesday, July 7, 2021, please email disasterrelief@oel.myflorida.com or call toll-free at 1-833-258-6735. My thanks also go to Speaker Sprowls, Senate President Simpson, Senator Stargel, and Representative Trumbull for their leadership during the 2021 legislative session to make this funding a reality., Governor DeSantis has proven once again that Florida is the Education State,said Commissioner of Education Richard Corcoran. Cash bonuses paid to new employees are wages. I thank Governor DeSantis for his leadership throughout these challenging times and for putting families first as we work together to move Florida forward., Dedicated teachers across Florida have gone above and beyond over the last 18 months to make certain our students have every opportunity to continue to make learning gains in the midst of the COVID-19 Pandemic,said Senate President Wilton Simpson. A Form 1099-MISC reporting the payment would be required if the payment constituted income to the recipient. Florida Department of Economic Opportunity THE ANSWER No, teachers and first responders will not owe taxes on their $1,000 COVID-19 bonuses because the checks Rather, the payment is compensation for services and is also generally considered wages, subject to withholding of applicable taxes. %%EOF Under Florida law, e-mail addresses are public records. Under section 139 of the Internal Revenue Code, qualified disaster relief payments are generally not gross income for tax purposes and are not reportable as income on a federal income tax return. However, no deduction or credit is allowed for the childcare expenses, to the extent of such payment. Floridas teachers and principals went above and beyond this school year under unprecedented circumstances. These heroes are the backbone of our communities and today the Governor sent a clear message that Florida loves and appreciates their hard work and dedication. In addition to these webinars and in an effort to assist with any questions you receive, the Division of Early Learning will post Frequently Asked Questions (FAQs) in the coming days. While other states kept their schools closed, Florida opened them up and allowed students to return to normalcy. (added November 17, 2021), Q3: I am an employer who received a grant from my state/local government to be used to provide premium pay to eligible workers during the COVID-19 pandemic. Employers generally must withhold federal income tax as well as social security tax and Medicare tax from employees' wages. A4: Yes, you must include the payment in gross income as compensation for services. Alaska is in this group as well, but please see below for more nuanced information. His exceptional leadership and bold vision has taken Floridas minimum teacher salaries to an average of $46,000, and his focus on celebrating and elevating our educators is unparalleled. Great teachers, great principals and great administrators lead directly to better outcomes for Floridas students, and I was proud to join some great teachers at Lakewood Elementary today to hand them $1,000 bonuses., Educators Eligible for Disaster Relief Funds, Almost 177,000 Disaster Relief Payments will go to Florida teachers. If you do not want your e-mail address released in response to a public records request, do not send electronic mail to this entity. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Teachers and principals may also be eligible for disaster relief payments of up to $1,000. WebPremium pay is an amount up to $13 per hour in addition to the wages or remuneration a worker otherwise receives and in an aggregate amount not to exceed $25,000 per eligible If I make such a payment to my employees, must I withhold income and employment taxes on that payment? In order to ensure that these disaster relief payments can be timely provided, information must be submitted by Friday, August 6, 2021. Floridas teachers deserve this recognition and I am grateful for our Governors leadership and his commitment to rewarding them., Thank you to Governor DeSantis, Senate President Simpson, Speaker Sprowls and the entire legislative body for recognizing the outstanding work of our educators and administrators, said Pinellas County Schools Superintendent Dr. Michael Grego. I thank Governor DeSantis for his leadership throughout these challenging times and for putting families first as we work together to move Florida forward., Dedicated teachers across Florida have gone above and beyond over the last 18 months to make certain our students have every opportunity to continue to make learning gains in the midst of the COVID-19 Pandemic,said Senate President Wilton Simpson. Give Light and the People Will Find Their Own Way. Please register for ONE of the webinars listed below. Georgia Teachers may be eligible for a stimulus check of up to $1,000 if they are employed full-time. But theres still one question our VERIFY team continues to get: Will taxes be owed on these payments? TALLAHASSEE, Fla. Today, Governor DeSantis handed out the first of nearly 177,000 Disaster Relief Payments of up to $1,000 to Floridas educators in recognition of their hard work to educate students in the 2020-2021 school year. PUBLIC HEALTH ACCREDITATION BOARD: FLORIDA DEPARTMENT OF HEALTH DOING A REALLY EXCELLENT JOB WITH COVID-19 DATA COLLECTION & ANALYSIS, Governor Ron DeSantis Encourages Floridians to Prepare for Hurricane Season Ahead of Florida Disaster Preparedness Sales Tax Holiday, Governor Ron DeSantis Announces More Than $765 Million in Record Funding for Teachers. A11: No, this payment is not included in gross income. Therefore, the payments will not have income tax or employer taxes withheld. WebTo help struggling taxpayers affected by the COVID-19 pandemic, the IRS issued Notice 2022-36 PDF, which provides penalty relief to most people and businesses who file certain 2019 or 2020 returns late. Teachers are the heart of our community and have always gone above and beyond to put the needs of students first. No, teachers and first responders will not owe taxes on their $1,000 COVID-19 bonuses because the checks are classified as qualified disaster relief payments, rather than bonuses, so taxes will not be withheld, according to the state. The application for the first qualified disaster relief payment is CLOSED. WebThe Disaster Relief I salary range is $49,657 to $77,665 in Ojai, California. Over the past year, minimum pay for Floridas teachers increased by an average of $6,000 from $40,000 to $46,000. You can also follow us on Snapchat, Twitter, Instagram, Facebook and TikTok. Governors Press Office More information on withholding federal income tax, social security tax, and Medicare tax can be found in Publication 15, Employer's Tax Guide. The Florida Education Association, a union representing teachers across the state, has been advising its member to check with a financial adviser. More information about the uses of SLFR Funds may be found in the Interim Final RulePDF. See section 139(b). A A Florida taxpayers will be paying millions of dollars to mail out bonuses to teachers and first responders. ~ In total, checks will be delivered to nearly 177,000 Florida educators ~, Click hereto watch the full presentation. A12: No. 850-717-9282 One exclusion is for qualified disaster relief payments under section 139 of the Internal Revenue Code (Code). Opening our schools last year was the right decision and teachers throughout the state were on the front lines of getting Floridas education system back on track. 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