Payroll Tax Rates for 2001

John P. Kruczek, University Controller

The new income tax withholding rates will go into effect January 1, 2001. The following Tables for Percentage Method of Withholding may be used to determine your biweekly withholding tax in calendar year 2001.

The Social Security Administration has announced that the Social Security (OASDI) wage base will be increased from $76,200 to $80,400 in the year 2001. 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 2001. With the change in wage base, the maximum Social Security tax employees and employers will each pay in 2001 will increase from $4,724.40 to $4,984.80. 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 or Email Ms. Donna McClure dmcclure@ufl.edu, Greg McEachern gmc@ufl.edu, or Murphy Miller at mjmiller in University Payroll Services at 392-1231.

Attachment: Tables for Percentage Method of Withholding are available at [attachment-list]