Changes to Academic Division Staff Paychecks
Posted: January 2, 2013
From: Darrell Kozuch, Assistant Vice President, University Human Resources
Subject: Changes to Your Paycheck
Dear Academic Division staff,
We have all been hearing a lot on the news about the “fiscal cliff” - including the tax changes that Congress had to consider before Dec. 31, 2012. As many of you know, President Obama is expected to sign legislation today that will prevent income tax increases for most Americans and forestall substantial cuts in defense and other federal programs.
As of Jan. 1, 2013, changes to the Social Security (FICA) tax will result in a greater tax withholding, resulting in a 2% reduction of your gross pay. In other words, for every $1,000 of gross pay on your paychecks, your take-home pay will decrease by $20.
This change takes effect with your paycheck dated this Friday, Jan. 4, 2013. Because this check is also a scheduled “limited deduction” paycheck, you may not notice the reduced take-home pay. The impact will be more obvious on your check dated Jan. 18, 2013.
At this time we do not have the adjusted Federal Withholding Tax Table for 2013, which means we will be using the 2012 tax table for the Jan. 4, 2013, paycheck. We will begin using 2013 federal tax withholding tables when they are released and will continue to monitor any actions Congress may take in the near future.
Vice President and Chief Human Resources Officer Carkeek approved distribution of this message.