Message on payroll tax reduction
ASU faculty and staff will see a two percentage point decrease in their Social Security (FICA) tax withholding rate from 6.2 percent to 4.2 percent of wages paid, effective on their Jan. 14, 2011 paycheck.
This reduction in employee paid FICA taxes is for calendar year 2011 only, and is a result of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The reduced Social Security withholding will have no effect on the employee’s future Social Security benefits (see http://www.irs.gov/newsroom/article/0,,id=232590,00.html).
This decrease in payroll taxes withheld may be offset by increased benefit (insurance, short term disability etc.) premiums as a result of elections made during open enrollment.
As always, employees can review their gross pay, withholdings, benefits premiums and net pay by visiting the "My Employment" section of My ASU.