||All Agency Payroll and Personnel Officers
||Gary Reardon, Director Payroll Services
||November 29, 1999
||Social Security Wage and Tax Information
Federal and State Filing Status
Advance Payment of Earned Income Credit
Social Security Wage & Tax Information
- Effective January 1, 2000 the Social Security wage base
will increase to $76,200. The maximum employee share contribution will be $4,724.40.
There continues to be no limit on wages subject to the Medicare tax.
All covered wages are subject to a 1.45% contribution from employees.
The combined FICA/Medicare tax rate will remain at 7.65% for tax year
2000 (FICA tax rate is 6.2% and Medicare tax rate is 1.45%).
Federal & State Filing Status
- In accordance with Federal Circular E and State Circular
CT, all employees filing exempt status are required to complete a new W-4 form by the 15th
of February of each year. If employees are filing exempt status from both Federal and
State taxes, then you must obtain a new Federal form, W-4 and a new State form CT-W-4. To
assist the agencies, we have included in your paperwork this week (if applicable) a report
of employees we have identified as filing exempt for tax purposes.
- If an employee does not comply with this request, you are to begin
withholding Federal and State taxes at the applicable rates,
||single with zero withholding
||flat 4.5% (D with special tax indicator = 07)
Advanced Payment of Earned Income Credit
- For those employees that have a form W-5 (Advance
Payment of Earned Income Credit) on file for tax year 1999 - this form will become
invalid on December 31, 1999.
- If the employee is eligible for advance Earned Income Credit payments for tax year
2000, a new form W-5 must be submitted - refer to memorandum
94-15 for coding instructions.
- If the agency does not receive a new form W-5, the deduction must be closed effective
with the January 14, 2000, paycheck.
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