12-P-019 Extension of OASDI 4.2% Tax Rate for Employees (Amends 12-p-018)
| DATE: | December 28, 2011 | ||
|---|---|---|---|
| SUBJECT: | Extension of OASDI 4.2% Tax Rate for Employees | ||
| EFFECTIVE DATE: | January 1, 2012 | ||
| CONTACT: |
Sunni Zentner |
(785) 296-7058 |
|
| APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
| SUMMARY: |
Extension of OASDI 4.2% Tax Rate for Employees |
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Congress has granted a two-month extension to the Tax Relief Act of 2010 by passing the Temporary Payroll Tax Cut Continuation Act of 2011. The OASDI tax rate for the first two months of 2012 will be 4.2% for employees and 6.2% for employers. If no changes are passed by Congress, the OASDI tax rate for employees will increase to 6.2% beginning March 1, 2012. However, Congress continues negotiations that would extend the payroll tax cut for the remainder of 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.
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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