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2018 Tax Changes/Beneflex Election Form

Offices Services / Payroll/Disbursements / 2018 Tax Changes/Beneflex Election Form
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TO: All Employees
FROM: Disbursements Office
DATE: January, 2018
RE: 2018 Tax Changes/Beneflex Election Form

  1. FEDERAL WITHHOLDING TAXES.
    Each exemption is worth $4,150. per year.
     
  2. SOCIAL SECURITY TAX, totaling 7.65% for employees, which is divided into two components and 7.65% for employers, which is divided into two components:
     
    1. FICA percentage for employee: 6.20%
      Maximum wages subject to FICA: $128,400.00
      Maximum annual FICA Contribution: $7,960.80

      FICA percentage for employer: 6.20%
      Maximum wages subject to FICA: $128,400.00
      Maximum annual FICA Contribution: $7,960.80
       
    2. MEDICARE percentage for both employee and employer: 1.45%
      There is no cap on the amount of wages subject to the Medicare tax in 2018.
       
  3. PENNSYLVANIA WITHHOLDING TAXES are: 3.07%
     
  4. NJ UNEMPLOYMENT
    Maximum wages subject to NJ Unemployment: $33,700.00
    Maximum annual contribution:
       ​Unemployment Insurance Tax:.3825% - $128.90
       Workforce Development Tax: .0425% - $14.32
       Family Leave Insurance .09% - $30.33
       Total NJ U/D  $173.55
     
  5. The BENESAVE University Benefit is taxable for New Jersey state withholding tax only. This tax will be applied in January.

For all employees that have filled out 2018 BeneFlex election forms, you should see the impact of your elections in your January paychecks.  Please review any changes in both your net salary and your deductions, confirming that what you elected is correctly indicated on your stub. If the amount is not what you had expected, please call Barbara Huff (X7363) for the monthly payroll or Amy Loux  (X7360) for the semi-monthly or bi-weekly payroll in the Disbursements office.