Greetings HBCSD Employees and Substitutes,

To ensure clarity regarding your payroll, we want to provide comprehensive explanations of various terms you may encounter on your pay stubs. Attached is information on how to read your paystub and below are descriptions of the various terms you may encounter:

• SST/SWT (State Sales Tax): This represents the state sales tax deducted from your paycheck. It contributes to funding various state programs and services.

• MEDI (Medicare Tax): MEDI refers to the Medicare tax, deducted from your earnings to support the Medicare program, providing healthcare benefits for individuals aged 65 and older, as well as certain younger people with disabilities.

• SUI (State Unemployment Insurance): SUI is a tax imposed by states to fund unemployment benefits for workers who have lost their jobs. It is deducted from your paycheck to contribute to the state's unemployment insurance fund.

• WorkComp (Workers' Compensation Insurance): This insurance program provides medical and wage replacement benefits to employees who suffer work-related injuries or illnesses. WorkComp deductions contribute to funding this insurance coverage.

• OASDI DED (Old Age, Survivors, and Disability Insurance Deduction): OASDI DED represents the deduction for Social Security taxes. It funds benefits for retirees, survivors, and individuals with disabilities.

• FWT (Federal Withholding Tax): FWT is the amount withheld from your paycheck to cover federal income taxes. The withheld amount is determined based on your filing status, income level, and allowances claimed on your W-4 form.

• CalSTRS (California State Teachers' Retirement System): CalSTRS is a retirement system that provides pension benefits to California's public school educators and educational employees. Both employees and employers contribute to CalSTRS to fund future retirement benefits.

• CalPERS (California Public Employees' Retirement System): CalPERS provides pension and health benefits to California's public employees, including state and local government workers. Similar to CalSTRS, contributions from both employees and employers fund CalPERS to support retirement benefits.

Understanding these terms is crucial for managing your finances effectively and planning for your future. If you have any questions or require further clarification on any of these terms, please contact a professional tax accountant.