FY CareShare Announcement

Details about CareShare

PURPOSE: The Plan provides the opportunity for participants to earn annual, performance-based incentive awards as part of their total compensation program. The Plan is intended to: 

• Link the program as closely as possible to Cook Children’s financial performance, quality and patient safety.
• To promote a caring and collaborative environment for our patients, families and one another that contributes to improved patient satisfaction and quality outcomes for our patients. We all influence the experience here at Cook Children’s -- for our patients, their families, our visitors and each other.

PLAN EFFECTIVE DATE: October 1, 2023

PLAN TERM: October 1, 2023 – September 30, 2024

GENERAL ELIGIBILITY:

• All employees in good standing up through manager, excluding physicians. NOTE: Health Plan employees: Earlier this year, the Health Plan team received a one-time discretionary Commit to Connect Bonus in lieu of this year’s CareShare Bonus.
• All full-time, half-time, part-time, pool and PRN employees working 80.01 or more hours during the plan year and are in an active status on the payout date are eligible for an incentive.
  • Employees who terminate employment between the last day of the plan year and the date of the payout are not eligible to receive the incentive payment.
• Temporary employees are not eligible for an incentive.
• Employees who have received a final written warning or above, during the plan year, are not eligible for an incentive.
• Employees who are on a Leave of Absence at the time of payout are eligible and will receive their incentive on the payout date.

PLAN PAYOUT AMOUNT AND DATE:

Paid as a lump sum as soon as practical after the end of the Plan year. Payout date will be Nov. 22, 2024. All payments will be grossed up by 22%. See below for further information related to payment/payroll considerations.

PRORATION RULES:

• New hire: as long as an employee achieves the minimum amount of hours, s/he will be eligible to participate and receive an incentive based on the eligible work hours.
• Rehire: if an employee terminates employment and is rehired during the same fiscal year, as long as s/he is on payroll and achieves the minimum amount of hours, s/he will be eligible to participate and receive an incentive based on the eligible work hours.
• Promotion: no change in eligibility based on promotion, unless an employee is promoted into a position eligible for the Managerial Incentive Plan.
• Demotion: no change in eligibility based on demotion.
• Transfer: no change in eligibility based on promotion, unless an employee is promoted into a position eligible for the Managerial Incentive Plan.
• Termination: In order to receive a payment, an employee must:
  • Be active on the last day of the plan year
  • Be active on the incentive payment date AND
  • Be in good standing in order to receive the payout.
• Death, disability or retirement: may be authorized and paid, however the employee must achieve the minimum number of hours to be eligible.
• Metric achievement will be based on the company the employee is in as of the last day of the plan year.
• Productive Hours: are based upon full pay periods during the plan year.

PAYROLL ISSUES:

• Incentive pay is considered earnings for the 403(b) plan. For employees enrolled in the 403(b)-retirement plan, deductions will be taken from incentive payments based on 403(b) election and applicable legal limits.

TAX IMPLICATIONS:

• Cook Children’s typically includes incentive compensation with the employee’s regular base paycheck. Federal and State taxes are withheld at the supplemental rate as mandated/required by Federal and State agencies for incentive/bonus pay. Additionally, Social Security and other Federal or State deductions will also be taken.

AMENDMENT OR TERMINATION OF PROGRAM:

• Cook Children’s Health Care System, by the action of the Chief Administrative Officer or the President and CEO of the system, reserves the right to amend or terminate this plan at any time.

TERMS OF EMPLOYMENT:

Nothing in this plan will limit Cook Children’s right to terminate an individual’s employment at any time.

CareShare Bonus tax treatment information

• For employees eligible for the FY2024 CareShare incentive, this bonus will be included in your Nov. 22, 2024, paycheck and appear as “Incentive Bonus” in the Wages section.
• Please note that this bonus is subject to taxes under IRS rules. To help offset some of this tax burden, we plan to increase your wages by 22% of the bonus amount. This extra payment will appear on your paycheck as “Gross Up” in the Wages section.

For example:

• If you receive a $500.00 bonus, we will pay you an extra $110.00. If you receive a $250.00 bonus, we will pay you an extra $55.00. If you receive a $75.00 bonus, we will pay you an extra $16.50.

Please remember these key points as you review your paycheck:

• The Wages section of your next paycheck will include the amount of the CareShare incentive bonus you received.
• We will increase your paycheck by 22% of the bonus amount (i.e., Gross Up). This represents an additional cash payment to help offset some of the taxes you pay on the bonus.
• The amount of the Gross Up you receive may or may not cover all the additional income tax you pay since each employee has her/his own unique tax situation.

Below is an example of how the bonus and gross up amounts will appear on your printable pay stub: