Payroll Tax Rates Decrease Beginning July 2003
John P. Kruczek, University Controller
The Jobs and Growth Tax Relief Reconciliation Act of 2003 includes reduced rates of federal income tax withholding. The new income tax withholding rates for University of Florida employees will go into effect for pay dates beginning in July 2003. The new Tables for Percentage Method of Withholding may be used to determine your biweekly withholding tax.
The supplemental tax rate will also decrease to 25% beginning in July. The supplemental tax rate is used to calculate the gross payment amount of Departmental Superior Accomplishment Awards. These awards allow departments to reward employees who meet certain criteria with a net check of $50.00 and the university pays all the withholding taxes. The gross amount of the award decreases to $74.24. Bonus and Extra State Compensation payments are also taxed at the supplemental rate.
Please share this information with your staff that are responsible for the preparation of budgets, sponsored research proposals, and departmental payrolls. If you have any questions concerning these changes, please call or email Ms. Donna McClure firstname.lastname@example.org; Greg McEachern email@example.com; or Steve Sauls firstname.lastname@example.org in University Payroll Services at 392-1231.