Date: December 31, 2002
Bulletin No. 366
|Subject||Changes in Federal Income Tax Withholding Tables, Earned Income Tax Credits and Social Security/Medicare Deductions for the Year 2003|
|Purpose||To advise agencies of changes in withholding allowances and maximum Social Security Tax.|
|Eligible Employees||All employees.|
|Effective Dates||New rates will be reflected in the Institution checks dated January 09, 2003 and Administration checks dated January 15, 2003.|
The value of a withholding allowance has
been increased to $58.65 weekly, $117.31 biweekly, $254.17 monthly and $3,050.00
annually. To request a copy of 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.
|Advances Payment of Earned Income Credit||
In 2003, employees whose earned income is
less than $29,666 or $30,666 if married filing jointly may be eligible for the
advance payment of the Earned Income Credit (EIC), with a maximum credit of
$1,528. The new 2003 tables for calculating the credits are also included in the
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 2003 Social Security Tax will be calculated at 6.2% on the first $87,000 of wages resulting in a maximum Social Security tax deduction of $5,394.00. 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.|