Payroll System Changes

Employee Rate for Social Security

The Temporary Payroll Tax Cut Continuation Act of 2011 which temporarily extended 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 has ended. Employees will see the 2% tax rate increase on paychecks for 1/10/2013.

New Federal Income Tax Tables

The Internal Revenue Service has issued new federal income tax tables for wages paid after December 31, 2012 after President Obama signed them into law on January 2nd. The new federal withholding tables will be reflected on the January 10, 2013 paycheck.

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_2013.htm

Even though this pay cycle is for the period December 16-31, 2012 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.

Medical Flexible Savings Accounts

694 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.

Dependent Care

Enrollments for 118 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.

2012 W-2 Fast Facts

See the link under Hot Topics for everything you need to know about our 2012 W-2 Forms: http://www.wsu.edu/payroll.

Additional Medicare Withholding Tax

The employee rate for medicare is 1.45%, Starting with wages paid in 2013, employers are required to withhold an additional .9% additional medicare tax from wages paid to an employee in excess of $200,000 in a calendar year. WSU is required to withhold the additional medicare tax in the payperiod in which an employee’s year-to-date medicare gross wages exceed $200,000. The additional medicare tax is only paid for by the employee so there is no employer contribution.  

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