How to Read Your Pay Stub COMMUNITY SERVICES GROUP INC 320 HIGHLAND DRIVE P O Box 597 MOUNTVILLE PA 17554 JOHN DOE Emp# 22222 12/27/2010 To 1/09/2011 Org: 100/ADM/LANADM/12341 Shift: 01 Supv: 12345 Check No. 0000000 1/19/2011 COMMUNITY SERVICES GROUP INC, MOUNTVILLE, PA 17554 Earnings: Week Shift Rate Hours/Units Shift Prem Current Year to Date REGHRS 01 99 0.00 00 Hours 000.00 0000.00 0000.00 PTO 01 99 0.00 00 Hours 000.00 0000.00 0000.00 REGHRS 02 99 0.00 00 Hours 000.00 0000.00 0000.00 FLS OT 02 99 0.00 0 Hours 000.00 0000.00 0000.00 Mileage 0.00 00.00 Qty: Hrs: 00.000 Total Gross 000.00 0000.00 0000.00 Taxes Withheld: Taxable Wages Status/#Ex Current Year To Date FIT Federal 000.00 000.00 FICA FICA 00.00 000.00 MEDI Medicare 00.00 000.00 PA-SIT State 00.00 000.00 P1-SUI SUI 0.00 0.00 AL-LIT AL 00.00 000.00 Total Taxes: 000.00 00000.00 Other Deduction 401K HMO-MEDICAL HEALTH REL LST

Current Year To Date 00.00 000.00 00.00 000.00 00.00 000.00 0.00 00.00 Total Deductions: 000.00 00000.00 NET PAY: 00000.00 00000.00 Direct Deposits: Current XXXXXXXXXXXXXXX444 00000.00 Total Direct Deposits: 00000.00 CHECK AMOUNT: .00 Leave Plan Hours: Accrued Earned Carryover Taken Available PTO .000 00.00 0.000 00.00 00.00 PTO III FT .000 00.00 0.000 00.00 00.00 SICK LEAVE .000 00000 0.000 00.00 00.00 1/19/2011 Direct Deposit Advice: NON-NEGOTIABLE NON-NEGOTIABLE NON-NEGOTIABLE JOHN DOE 414 MAPLE ST ANYTOWN, PA 17545 COMMUNITY SERVICES GROUP INC 320 HIGHLAND DRIVE P O Box 597 MOUNTVILLE PA 17554 100/ADM/LANADM/12341 JOHN DOE 414 MAPLE ST ANYTOWN, PA 17545

HOW TO CHECK YOUR PAY STUB 1. Employee Information: Look at the top and bottom of your pay stub. This contains your name, your employee identification number, department, work location and your mailing address. Please verify that this information is accurate. 2. Figure your gross pay: This is the total income you earn in a pay period before factoring any taxes or deductions. There is a year-to date-column on your pay stub, which shows you your year to day gross earnings. Your pay stub is divided into week 01 and week 02 representing your hours each week in the pay period used to calculate your wages. The shift premium column (Shft Prem) in not being used at this time. 3. Locate Social Security (FICA) with holdings: This is a set amount required by the government to be with held from each pay check. CSG also contributes to your Social Security with holdings. 4. Locate Medicare (MEDI) withholdings: Like Social Security withholdings, this is mandatory. A pre-determined percentage is withheld from your income. This is divided equally over each pay period. 5. Locate Federal (FIT) and State tax (PA-SIT) withholdings: These are any taxes you owe to the federal or state governments. These are taken out each pay period in increments, based upon the estimated amount that you would owe at tax time. 6. Locate PA State Unemployment Tax Insurance (PA-SUTI): this is a mandatory tax and all wages are used to calculate this tax. 7. Deductions-Calculate your insurance and 401K deductions. Medical, dental, 401K and life insurance are deducted each pay period. There is a year-to date-column on your pay stub, which shows contributions to your insurance for the year. 8. Figure your net pay: This is your income after taxes and other withholdings. This is also called your 'take home pay." 9. Leave Plan Hours: Compare the number of hours of Paid Time OFF (PTO) and Sick Leave to your previous pay stub to determine if the correct balance has been carried forward. If you have taken Paid Time OFF (PTO) or Sick Leave has the correct number of hours been deducted? If you believe that the incorrect amount has been deducted contact your Employee Information Specialist (EIS).

Pay Codes EARNING & REIMBURSEMENT CODES REG HRS SAL

FLS OT HOL

ADD ANN BON REF HRD PMR ADJ ONC XTD HEP LOD MIL MLS PHY TUI TXR WEL JRY JRR

Regular hourly wages Regular salary wages Fair Labor Standards Overtime: Overtime automatically calculated by Optimum (Regular hourly wage x 1 + FLS x .5) Example: $10.00X1=$10.00+ $10x.5=$15.00 See Blended Rate Example at the End of this document Overtime due to working a holiday BONUSES SUBJECT TO FLS For hourly employees - must be on check 1 regardless of amount Additional Duties Bonus - given for extra hours worked (primarily salaried employees) Anniversary Bonus - given for designated years of service Bonus - does not fall under any other category Referral Bonus - given to employees who have referred another employee DISCRETIONARY BONUSES (Not subject to FLS) Hardship - given to employees who qualify under policy guidelines for emergency funds Performance Management Reward AMOUNTS SUBJECT TO FLS Retro wage adjustment for rate increases On-call - given as set amount by the program for employees who must be available if needed Extra duty code - injections, cathing, etc. REIMBURSEMENTS Hepatitis B Vaccine Lodging - nontaxable Mileage submitted within 60 day window - nontaxable Meals - nontaxable Physical examination - nontaxable Tuition assistance - taxable Mileage submitted after 60 days - taxable Wellness Reimbursement - gym membership - taxable JURY DUTY Hrs that employee is paid while he/she serves on Jury Reimbursement of jury duty based on letter that employee receives last day served

FIT FICA

MEDI

PA-SIT

P1-SUI **- LIT

TAX CODES Federal Income Tax: This is the amount deducted for federal tax this period and year-todate Federal Insurance Contributions Act (FICA) Tax: imposed by the federal government on both employees and employers to fund federal programs that provides benefits for retirees, the disabled, and children of deceased workers. Medicare tax: This amount is withheld so you'll be covered by Medicare when you reach age 65. The amount withheld from your pay is 1.45% of your gross income. CSG pays an extra 1.45% that doesn't come out of your check. There are no income limits. All covered wages are subject to Medicare tax. Pennsylvania State Income Tax: Depending on where you live, you may not have state withholding or you might have withholding for more than 1 state (the state you live in and the state[s] you work in). The amount withheld from your pay depends on whether you're married or single and how many allowances you claim on the state equivalent of Form W-4 you filed with your employer. Pennsylvania State Unemployment Insurance: All wages, except vocational wages, are taxable for Unemployment. Local Income Tax: This tax is based on where you live not where you work.

NON PRE TAX MED INSPPO PRE TAX MED INS-PPO

HMO-MEDICAL

HMO NON-PRE TAX MEDICAL PT MEDICAL BENEFIT

LST

CHILD SUPPORT CHILD CARE

WAGE ATTACHMENT VOL TERM LIFE HEALTH RELATED HISTORY CHECK

DEDUCTION CODES PPO –Preferred Provider Organization- this is the employee’s portion of the insurance premium deducted after taxes have been taken out. This means that the employee did not elect the pretax option during enrollment. PPO –Preferred Provider Organization- this is the employee’s portion of the insurance premium deducted before taxes have been taken out. HMO-Health Maintenance Organization - this is the employee’s portion of the insurance premium deducted before taxes have been taken out. HMO-Health Maintenance Organization - this is the employee’s portion of the insurance premium deducted after taxes have been taken out. This means that the employee did not elect the pretax option during enrollment. This is the employees portion of the premium for part-time employees who elect to participate in the mini med plan Local Services Tax (LST) The tax formerly known as the Occupational Privilege Tax and then the Emergency & Municipal Services Tax has been renamed the Local Services Tax (LST) by the Pennsylvania Legislature. Depending on where you work, the rate can be anywhere from $10.00 to $52.00 per year. Employers are required to withhold this tax from all persons employed, unless the employee shows proof that the tax was paid elsewhere for the same year. This is a court order deduction for child support This is an amount deducted from the employee’s pay check because they have elected to participate in a flexible spending account that is set up for child care. This money is deducted before taxes. This is a court ordered deduction for child support, PHEAA Student Loans, back rent on a residential lease, restitution for criminal charges or certain types of taxes. This is a deduction for life insurance that the employee has elected. This is an amount that is deducted prior to taxes for a flexible spending account for medical expenses. This is an amount deducted from your check to pay for a criminal history check. This is typically used with vocational employees.

401 MATCH BADGE REPLACE WEIGHT WATCHERS

FNL OTO PLV PTF PTO PTU PTP SCK FLP

This is a deduction for the 401K plan and the employee meets the requirements to have the company match Fee for replacing CSG ID Badge Deductions for participation in the Weight Watcher Program

LEAVE PLAN CODES Funeral Leave Scheduled OT PTO Maternity/Paternity Leave - up to 40 hours PTO FAMILY MEDICAL LEAVE - Paid time off due to Family Medical Leave Paid time off - scheduled Paid time off - unscheduled Paid time off - payout Sick Leave - has converted PTO to sick leave and has now been absent more than 3 days Sick Leave - FAMILY MEDICAL LEAVE

DIRECT DEPOSIT DIRECT DEPSIT II

DIRECT DEPOSIT CODES Direct Deposit into an employee bank account Direct Deposit into a second employee bank account

Frequently Asked Questions about Pay 1. How are blended rates calculated with overtime? Blended rates are calculated in the following manner: Scenario: Regular Hourly Rate: $9.00 Sleep Rate: $7.25 50 hours worked during the week = 8 hours sleeping and 42 hours awake Calculations: 8 hours X $7.25 = $58.00 42 hours X $9.00 hours = $378.00 Total = =$436.00 $436.00 ÷ 50 hours during week= $8.72 Blended rate $8.72 x 0.5 = $4.36 represent the overtime portion of blended rate $4.36 X 8=$34.88 Pay for week = $436.00 + $34.88=$470.88 Note: Portions of overtime (as in this example) will appear on two separate lines of your pay stub. A portion will appear as hours in the line labeled REGHRS and the overtime portion (the 0.5 times or $4.36 in this example) will appear under FLS OT Important: Because blended rates are calculated using the number of hours worked in a week you may have two different rates on your pay stub each representing a blended rate for the two different weeks in the pay period. 2. What should I do if I think that there is a mistake on my paycheck? Contact your Employee Information Specialist (EIS). 3. How are mistakes corrected on my paycheck? Corrections to deductions or withholdings such as insurance errors, wage garnishments, 401k withholdings, and credit union withholdings will be corrected on the next regularly scheduled run to insure the accumulator totals and payments to third parties are corrected appropriately. Missed hours / wages greater than 25% of the average paid bi-weekly wages over the last quarter will be considered for manual payroll check processing. Overpayment will be regarded as an advance of future wages payable and will be deducted in whole or in part from the next available paycheck(s) until the overpaid amount has been fully repaid. 4. What should I do if I already paid my local service tax with another employer or I am exempt from the tax? Complete the Local Services Tax Exemption Certificate Form and submit it to your Employee Information Specialist (EIS). 5. What should I do if I have a name and/or address change? Contact your local Employee Information Specialist and they will give you the forms that you need to change your name and/or address.

6. Can I have my paycheck go into more than one bank account with direct deposit? Employees may elect to have their pay split between a primary and secondary account. The employee is responsible for informing the payroll department if any changes occur in the bank account(s) receiving direct deposits. 7. When will I be reimbursed for my mileage? Mileage is reimbursed the next pay period after it is submitted. 8. If I do not work a holiday and use PTO am I paid at my regular pay or holiday pay? You are paid at your regular rate of pay.