Congressional Action Impacts Employees' Take Home Pay
Although the "fiscal cliff" agreement reached by Congress allows federal income tax rates to remain relatively unchanged for 98 percent of taxpayers, most UCM employees will still see a decrease in their take home (net) pay beginning with the Jan. 15, 2013 payroll.
This will occur because on Dec. 31, 2012, the temporary 2 percent reduction in the employees' share of the Social Security tax (FICA) expired, and the provision was not extended as part of Congress' recent negotiations. As a result, the temporary 4.2 percent FICA rate employees experienced in 2011 and 2012 will conclude and the rate will return to 6.2 percent.
UCM student employees and graduate assistants are not subject to FICA/MEDI withholding per Internal Revenue Code 3121, and will not be affected by the expiration of the FICA reduction.
Employee pay information for the Jan. 15, 2013 payroll is available now in MyCentral. Choose the Employee Tab and follow the links to Pay Information and Pay Stub. The MyCentral link is below. Individuals with specific questions can contact Payroll Services at 4067.