Current News
Notice to Student Employees (Jan 2012)
Email sent to all student employees and their supervisors regarding timely submission of hours worked.
Social Security Taxes for 2011
The Social Security Administration (SSA) announces that the Social Security wage base will not increase in 2011. This wage base will be $106,800 beginning with the first payroll of 2011. The maximum contribution will be $6,621.60. The Medicare portion of FICA does not have a wage base or maximum contribution.
FICA tax that comes out of your check each payday is the social security tax. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 lowers the FICA tax rate from 6.2% to 4.2% for one year effective January 1, 2011. Winthrop will continue to pay the full 6.2% rate so there is no loss in benefits. The MQFE tax is the Medicare portion and is taxed at the rate of 1.45% of taxable wages and has no maximum.
Optional Life Insurance
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.
Retirement Plan Limitations for 2011
The IRS has announced that the limitations on retirement plans for 2011 are as follows:
etirement Limitations
| 401(K), 457, and 403(b) Deferred Limit |
$ 16,500
|
| Age 50+ Catch-up Contributions Limit |
$ 5,500
|
| 457(b) Pre-Retirement Catch-up Limit |
$ 16,500
|
*Annual amount may differ for individual participants in certain cases.