Payroll Tax Rates for 2000
John P. Kruczek, University Controller
The new income tax withholding rates will go into effect January 1, 2000. The table for Percentage Method of Withholding may be used to determine your biweekly withholding tax in calendar year 2000.
The Social Security Administration has announced that the Social Security (OASDI) wage base will be increased from $72,600 to $76,200 in the year 2000. All taxable compensation will also be subject to the 1.45% Medicare tax. The FICA tax rate, which is the combined Social Security tax rate of 6.2% and the Medicare tax rate of 1.45%, remains at 7.65% for the calendar year 2000. With the change in wage base, the maximum Social Security tax employees and employers will each pay in 2000 will increase from $4,501.20 to $4,724.40. There is no maximum on the Medicare tax.
Please share this information with your staff who are responsible for the preparation of budgets, sponsored research proposals, and departmental payrolls. If you have any questions concerning these changes, please call Ms. Donna McClure; email@example.com Greg McEachern; firstname.lastname@example.org or Murphy Miller; email@example.com in University Payroll Services at 392-1231.