An email was sent to all student employees and their supervisors regarding timely submission of hours worked.
The Social Security Administration (SSA) announced that the Social Security wage base will not increase in 2016. The wage base will be $118,500 beginning with the first payroll of 2016. The maximum contribution will be $7,347.00. The Medicare portion of FICA does not have a wage base or maximum contribution; however, 2016 wages in excess of $200,000 will be subject to an extra 0.9% Medicare tax.
FICA tax that comes out of your check each payday is the social security tax. The FICA tax rate for 2016 is 6.2% for both the employee and employer. The MQFE tax is the Medicare portion and is taxed at the rate of 1.45% of taxable wages and has no maximum.
The premiums you pay through payroll deduction for the first $50,000 of Optional Life Insurance are now treated as pre-tax dollars if you are participating in the Money Plus program. This means the deduction reduces your taxable wages before taxes are calculated on the wages. The premiums for coverage over $50,000 will be treated as any other payroll deduction.
The IRS has announced that the limitations on retirement plans for 2016 are as follows:
*Annual amount may differ for individual participants in certain cases.