 News release effective December 26, 2012
Contractual Payroll Checks dated 12/26/12
For Contractual employees without direct deposit, payroll checks dated for 12/26/2012 were not mailed in advance because of the service recovery day on 12/24/12 and the Christmas holiday on 12/25/12. They will be mailed on 12/26/12 and most should be delivered by Friday 12/28/12.
Skip for Health Deductions
No health deductions will be taken for checks dated 1/2/13 for regular payroll employees or 1/04/13 for University employees.
Regular Payroll Checks dated 1/2/13 / Monthly checks dated 12/28/12
For Regular employees without direct deposit, payroll checks dated for 1/2/13 will not be mailed until 1/2/13 because of the service recovery day on 12/31/12 and the New Years holiday on 1/1/13. Most should be delivered by 1/4/13. Monthly checks for December will be mailed 12/27/12 for the pay date of 12/28/12.
2012 W2’s
Originally printed W-2's are scheduled to be mailed during the week of 1/14/2013. On-line 2012 W-2's will be available via POSC effective 01/17/2013.
2013 2% Cola’s
The 2% Cola’s will be effective 12/31/12. For Regular employees (where applicable) partial cola’s (9 days) representing 12/31/12 – 1/8/13 will be included in the paycheck dated 1/16/13. Full cola amounts (where applicable) will be included in the check dated 1/30/13. For monthly employees, check dated 1/31/13 will contain the full 2% cola, plus an adjustment in pay for the 12/31/12 date.
Maryland County (piggyback) Taxes
Three counties will have a change in their local taxes, they are: Anne Arundel 2.60%, Wicomico 3.20% and Talbot 2.40%.
2013 Federal Tax & Withholding
Based on Current legislation, certain income taxes were scheduled to increase January 1st, 2013. But due to continued discussions on Capitol Hill (hoping to prevent certain increases) the Internal Revenue Service has not yet published 2013 withholding formulas. Therefore employers have been instructed to use the 2012 federal income withholding formulas to begin processing paychecks for the New Year 2013.
The following will apply for Regular paychecks dated 1/2/13, University Paychecks dated 1/4/13 and Contractual Paychecks dated 1/9/13:
- The annual Federal withholding allowance is $3,800.
- The 2013 employee social security withholding tax rate has returned to 6.2% (up from 4.2% last year).
- The wage base for the calculation of social security taxes has increased from $110,100 to $113,700.
- The wage base for Medicare has been modified slightly (1.45% for employees earning from $1 - $200,000 and 2.35% for those employees earning over $200,000).
For more information on taxing and withholding, reference the IRS Publication 15, (Circular E) Employer's Tax Guide, on the IRS website.
Thank You
Robert Murphy, Director
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