|DATE:||March 21, 2012|
|SUBJECT:||Continuation of the Extension of OASDI 4.2% Tax Rate for Employees|
|EFFECTIVE DATE:||March 1, 2012|
(Original Signature on File)
Continuation of the Extension of OASDI 4.2% Tax Rate for Employees
President Obama has signed the Middle Class Tax Relief and Job Creation Act of 2012 which extends the employee OASDI tax rate reduction for the remaining ten months of 2012. The OASDI tax rate will be 4.2% for employees and 6.2% for employers for the remainder of 2012. If no further changes are passed by Congress, the OASDI tax rate for employees will increase to 6.2% beginning January 1, 2013. Medicare tax rates for employers and employees remain at 1.45%.
The Office of General Services, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.