Federal and State withholding taxes will be computed each pay period on an annualized basis according to current Federal and State tax tables. The amount of each personal exemption claimed on the Federal W-4 form is $4,050.00.
For calendar year 2017, the Old Age Survivors and Disability Insurance portion (retirement part) of the Social Security tax has a maximum wage base of $127,200.00 and a maximum contribution of $7,886.40. This has a tax rate of 6.2%. All covered Medicare taxable wages will be subject to the 1.45% Medicare tax.
If your Medicare Taxable Wages exceed $200,000.00 in one calendar year, you will be subject to an additional Employee Medicare Cost of .9% on all wages in excess of $200,000.00.
IRS Code Sec 79 - Group Term Life insurance purchased for employees by employers
The cost of Group Term Life insurance coverage in excess of $50,000.00 provided to an employee by an employer must be included in the employee's Federal and State Taxable Gross Earnings. We are required to withhold additional Social Security and Medicare on a biweekly basis and report this as Social Security and Medicare gross wages. Group Term Life insurance is based on 150% of employee's annual salary.
Any employee receiving 26 checks in 2017 with a salary greater than $1,282.05 per pay period or any employee receiving 20 checks in 2017 earning more than $1,666.66 per pay period will have taxable Group Term Life computed with their paychecks. Taxable Group Term Life is computed based on salary and age brackets and reported on a bi-weekly basis.
Health Savings and Plan C Health Insurance – Employee Health savings amounts are considered tax sheltered for Federal, State, and Social Security (FICA) taxes. If you are new this year with Health Savings, you should see a slight drop in your taxes due to the employee tax sheltered benefit.
Reminder to review your W-4 Form for tax withholding
If situations in your personal life have changed, your taxable income such as marital status, dependents, non-wage income, deductions, etc., you may wish to file an amended W-4 Form with the Office of Human Resources.
If you are having additional arbitrary Federal and/or State withholding tax withheld, these amounts will continue for the 2017 tax withholding. If you wish to make a change on your arbitrary taxes, you will need to complete a new
* http://webs.wichita.edu/depttools/depttoolsmemberfiles/humanresources2/W-4_form.pdf W4 form (Federal)
* http://webs.wichita.edu/depttools/depttoolsmemberfiles/humanresources2/k-4.pdf form (State)
You may print and sign the W4 and K4 and send to Human Resources, Box 15.
Reminder to Employees who may be claiming Exemption from Federal Withholding: these forms expire each year and must be re-submitted each calendar year. If you are eligible and wish to claim exempt status for 2017, you must fill out a new W-4 (Federal) and/or K-4 (State) to be exempt from taxes.
We hope that this information will assist you in understanding how your payroll is computed for the coming year. If you have any questions, please contact the Payroll department at (316) 978-3074.
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