TO:tttPrincipal Investigators, Fiscal Officers, and Employees
FROM:ttNelson Sakamoto, Director of Human Resources
SUBJECT:tRevised FY 2011-12 Fringe Benefits Schedule – Social Security Wage Base/Tax Rate Changes
ATTENTION All Principal Investigators/Fiscal Officers:
Effective January 1, 2012, the Social Security wage base will increase from $106,800 to $110,100. Earnings above the Social Security wage base in a given payroll year are not subject to the 6.2% Social Security taxes. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax. See the RCUH Policy 3.510 RCUH Fringe Benefits Schedule for the updated RCUH Fringe Benefits Schedule effective January 1, 2012.
Please plan accordingly for these changes.