From: Administrative E-Memo (memofrom@Colorado.EDU)
Date: Thu Jan 27 2011 - 18:29:46 MST
Date: Thu, 27 Jan 2011 18:29:46 -0700 (MST) From: Administrative E-Memo <memofrom@Colorado.EDU> Subject: 2011 Tax Changes
TO: Boulder Campus Teaching & Research Faculty, Staff,
Deans, Directors, Dept Chairs
FROM: Payroll & Benefit Services
SENDER: Mark Gelband
DATE: January 28, 2011
SUBJECT: 2011 Tax Changes
The recently passed federal Tax Relief Act of 2010 affects Social Security
taxes and income tax withholding. The 2011 income tax withholding tables have
been loaded into the payroll system (HRMS) effective for all pay days occurring
after January 1, 2011. Below is some important information about these changes
and about 2010 W-2s:
-The employee Social Security (OASDI) tax rate has been reduced from 6.2% to
4.2% of the first $106,800 of wages paid in 2011.
-The maximum that can be withheld will be $4,485.60, a $2,136 decrease
from the 2010 maximum of $6,621.60.
-The employer share of Social Security will remain at 6.2% for 2011.
-The benefits that are recorded by the Social Security Administration for
employees will be unchanged by this reduced employee rate.
This reduction in Social Security does not apply to State Classified employees,
student workers, or any employee paying into PERA Retirement. This is because
these employees do not have social security withheld from their pay checks.
The "Making Work Pay" tax credit implemented in early 2010 expired on December
31, 2010 and was not extended into the Tax Relief Act of 2010. What does this
mean? Employees will see an increase in Federal Income Tax withholding
starting for all pay days occurring after January 1, 2011.
Colorado Income Tax withholding tables also changed effective January 1, 2011.
There will be minor changes in the amount of Colorado income tax withheld from
2010 W-2s (Wage and Tax Statement)
For W-2s for calendar year 2010 have now been posted online. Employees can
access their 2010 W-2 using their campus portal. This self service feature is
located under the My.Pay tab in the My.CU portal. UCB employees can also access
their W-2 using CU Connect, by selecting the W2 Statement link in the MyCU
Links section. Federally required paper copies will be mailed to employees no
later than January 31, 2011.
If you have any questions on this information, please contact PBS at
303-735-6500 and select option 2 to speak with a payroll counselor.
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