The University Record, January 9, 1996
Time to check exemption status
Federal withholding tax tables effective Jan. 1 have resulted in changes in federal income tax withheld for most staff, according to the Payroll Office. In addition, the amount of each federal allowance increases this year from $2,500 to $2,550 on an annual basis.
The Social Security base increases to $62,700 from $61,200 last year. The rate remains at 6.2 percent for a maximum withholding of $3,887.40, up from $3,794.40 in 1995.
Medicare tax is based on all earnings paid, and the rate remains at 1.45 percent.
The state income tax rate remains at 4.4 percent, and each exemption remains at $2,400.
Those 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 1995 should review their status and submit new W-4 forms as soon as possible. Exempt status expires automatically on Feb. 15 if no 1996 form W-4 is submitted.
Forms are available at the Payroll Office, G395 Wolverine Tower---Low Rise; Hospital Payroll, 300 N. Ingalls Bldg.; and from all Personnel Service Centers. Also, the new tax chart can be obtained by calling the Payroll Office, 764-8250.