12-P-024 Continuation of the Extension of OASDI 4.2% Tax Rate for Employees (Supersedes 12-p-019)

DATE:	March 21, 2012
SUBJECT:	Continuation of the Extension of OASDI 4.2% Tax Rate for Employees
EFFECTIVE DATE:	March 1, 2012
CONTACT:	Sunni Zentner	(785) 296-7058	Sunni.Zentner.@da.ks.gov
APPROVAL:	Nancy Ruoff (Original Signature on File)
SUMMARY:	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.

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