Payroll System Changes

Employee Rate for Social Security

Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

New Federal Income Tax Tables

The Department of the Treasury has issued new federal income tax tables for wages paid after December 31, 2011.  To view the new tax tables to to:

http://www.wsu.edu/payroll/taxes/howto.htm

New Medical Premium Rates and New Health Carriers 

Three new Health Carriers and new medical premiums for PEBB sponsored medical plans are in effect for January coverage.  To view the new rates go to:

http://www.wsu.edu/payroll/deptpay/healthInsTable_2012.htm

Even though this pay cycle is for the period December 16-31, 2011 the medical premiums for the January 10th check is for January coverage.  Therefore, the new rates are in effect now.

To view your current medical and dental carrier, go to the Employee Benefits section within WEBPBS at http://www.wsu.edu/webpbs.

The new fair market value has been installed for the insurance premiums of domestic partners medical insurance.

If employees have any questions about their premiums, please contact Mike Olin at (509) 335-1278.

Medical Flexible Savings Accounts

719 employees who took the opportunity during Open Enrollment to sign up for medical flexible savings accounts will see their reductions reflected in this paycheck. Contributions to medical flexible accounts are not subject to federal income taxes, social security or medicare tax.

Combined Fund Drive

We no longer receive a copy of our employees’ enrollment or pledge sheet.  The forms have been replaced with an electronic feed of enrollment data from the state Combined Fund Drive office in Olympia.  Payroll Services will no longer have any information about annual pledges or charities that employees have selected.   22 transactions were processed for this paycycle.

Dependent Care

Enrollments for 114 employees have been processed this payroll for new or renewed enrollments in Dependent Care (GTN 010).

Fall Work Study Limits

Fall work study limits and balances will be removed after this payroll calculation so that Spring amounts can be applied.

2011 W-2 Fast Facts

See the link under Hot Topics for everything you need to know about our 2011 W-2 Forms:  http://www.wsu.edu/payroll.

Cell Phone Allowances

For tax year 2012, cell phone allowances are no longer taxable due to a change in the tax code. Changes were made this period to process earnings types CPA, CPF and CPN as non taxable earnings.

Please contact Alice Smethurst at (509) 335-1277 or alice@wsu.edu if there are any questions.