The University Record, January 7, 1997

Check your exemption status

Federal withholding tax tables have changed slightly, effective Jan. 1. Tax rates for 1997 are accessible on the University's payroll home page on the WorldWide Web. To access the page, use the URL http://www.umich.edu/~payroll/ and click on the box marked Tax Calculation Help.

In addition, the amount of each federal exemption increased from $2,550 to $2,650 per year. The base for Social Security withholding increased to $65,400 from the 1996 figure of $62,700. The rate remains at 6.2 percent, allowing a maximum withholding of $4,054.80, up from $3,887.40 in 1996.

Medicare tax rates are unchanged at 1.45 percent on all earnings paid, and Michigan income tax rates also are unchanged at 4.4 percent, but the state exemption increased to $2,500 from the 1996 figure of $2,400.

Employees who want to change the number of exemptions they claim must file revised federal or state W-4 forms 10 days before a pay date for the change to be effective that date.

Students who claimed exempt in 1996 should review their status and submit new W-4 forms as soon as possible. Exempt status automatically expires Feb. 15 if a new W-4 form is not submitted. If 1997 forms are not available, a 1996 form may be used. Just enter the current date next to the signature.

W-4 forms are available by phone (764-8253 for the voice response unit) or by accessing the payroll home page listed earlier in this article. Forms also are available at the Payroll Office, G395 Wolverine Tower-Low Rise Building; Hospital Payroll, 300 North Ingalls Building; and from the Human Resource Service Centers.