In addition, the amount of each federal allowance (exemption) increases from $2,350 to $2,450. The wage-base limit for both parts of FICA (Federal Social Security/Medicare) also has changed.
For Social Security, the base has been increased from $57,600 in 1993 to $60,600 this year. The rate remains at 6.2 percent for a maximum withholding of $3,757.20, compared with $3,571.20 in 1993.
For Medicare, the base increases to No Limit (from $135,000). The rate remains at 1.45 percent. This is the first year that there is no limit on the Medicare FICA gross. The limit was eliminated as part of the Omnibus Budget Reduction Act of 1993.
The state income tax rate remains at 4.6 percent and each exemption remains at $2,100.
Employees who wish to change the number of exemptions claimed must file revised federal or state W-4 forms 10 days before a paydate to be effective for that date.
Students who claimed exempt in 1993 should review their status and submit new W-4 forms as soon as possible. Exempt status automatically expires Feb. 15, 1994, if no 1994 form W-4 is submitted.
Forms are available at the Payroll Office, 2032 Administrative Services Building; Hospital Payroll, 300 North Ingalls Building; and from all Personnel Service Centers. Copies of the new tax chart can be obtained by calling the Payroll Office, 764-8250.