12-P-018 Change in Social Security Base Rate (Supersedes: 11-p-020)

The Social Security wage base for OASDI will be $110,100 for calendar year 2012.  This is a $3,300 increase from the wage base of the past three years of $106,800.  If no changes are passed by Congress, the OASDI tax rate for 2012 will be 6.2% for both employees and employers.  (Note that the 2011 OASDI tax rate was 4.2% for employees and 6.2% for employers under the Tax Relief Act of 2010, and that rate is scheduled to be 6.2% for both employees and employers in 2012.  However, bills currently being considered in Congress may change this.)  If no changes are passed by Congress, the maximum OASDI employee contribution for 2012 will be $6,826.20.   There continues to be no limit on wages subject to the Medicare tax in 2012.  Medicare tax rates for employers and employees remain at 1.45%.  Office of General Services staff are closely tracking legislation pending in Congress and additional informational circulars will be issued as necessary to communicate any changes for 2012 resulting from Federal Legislation.

For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).  Federal employees hired after January 1, 1984 will have a maximum contribution of $6,826.20 for OASDI and no maximum for Medicare.  The employer and employee rates continue to be the same.

For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).

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.

MJ:NTR:kao