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Payroll Services will be closed December 24, 2014 through January 1, 2015 in observance of the Winter Holiday.

Effective January 1, 2015, the following changes to payroll taxes will occur:

  • The 2014 Social Security tax rate will increase to 6.2%
  • The new wage base limit for Social Security will be $118,500.
  • An Additional Medicare Tax rate of 0.9% will apply to wages over $200,000. This is described as follows on the IRS.gov website:

    "An employer must withhold Additional Medicare Tax from wages it pays to an individual in excess of $200,000 in a calendar year, without regard to the individual's filing status or wages paid by another employer, (IRS.gov, 2012)."

Note: There is no wage base limit for Medicare. Therefore, 1.45% will continue to be taxed on the first $200,000 of your taxable gross earnings and 2.35% above $200,000.

Retirement Contribution Limits

  • Regarding 403(b) and 457(b) accounts, the 2015 contribution limit is $18,000, a $500 increase over 2014.

Changes to Calendar Year 2012 W-2 Forms

As required by the Patient Protection and Affordable Care Act, Box 12 DD on the form W-2 will now be populated with insurance coverage costs under an employer-sponsored group health plan. The University of Texas System has elected to use the "Premium Charged Method" to compute the amount reported. This method adds the employer and employee premiums and then excludes certain costs such as Basic Life, Basic Accidental Death and Dismemberment, and Employee Assistance Program. The amount reported is only a reporting requirement and does not affect your 2012 income taxes.

For Medical Resident FICA FAQ Information Click Here

 

 

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