Payroll Bulletin No. 300

*Subject*	Changes in Federal Income Tax Withholding Tables, Earned Income Tax Credits and Social Security/Medicare Deductions for the Year 2002.
*Purpose*	To advise agencies of changes in withholding allowances and maximum Social Security Tax.
*Affected Employees*	All employees.
Effective Date(s)	New rates will be reflected in the Administration checks dated January 2, 2002 and Institution checks dated January 10, 2002.
*Tax Tables*	The value of a withholding allowance has been increased to $57.69 weekly, $115.38 biweekly, $250.00 monthly and $3000 annually. To request a copy of the Circular E, Employer's Tax Guide, contact the IRS at the toll-free number 1-800-829-3676 or visit their website at www.irs.ustreas.gov to view this publication. The New York State Payroll System calculates taxes based on the annual table.
*Advance Payment of Earned Income Credit*	In 2002, employees whose earned income is less than $29,201 may be eligible for the advance payment of the Earned Income Credit (EIC), with a maximum credit of $1,503. The new 2002 tables for calculating the credits are also included in the circular E. Eligible employees must complete a new W-5, Earned Income Credit Advance Payment Certificate each year. Copies of the forms may be obtained from IRS.
*Social Security- Medicare Deductions*	The 2002 Social Security tax will be calculated at 6.2% on the first $84,900 of wages resulting in a maximum Social Security tax deduction of $5,263.80. The 1.45% Medicare tax will apply to all taxable wages, as there is no wage cap.
*Questions*	Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.


		Date: December 28, 2001	Bulletin No. 300