|Date: January 6, 2004||Bulletin No. 454|
|Subject||Summary of Tax-Related Changes for 2004|
|Purpose||To advise Agencies of tax-related changes for 2004.|
|Eligible Employees||Employees meeting the criteria as explained in this bulletin.|
|Effective Date(s)||New rates will be reflected in Institution checks dated January 08, 2004 and Administration checks dated January 14, 2004.|
For 2004 changes have been made to:
|Advance Payment of Earned Income Credit||
In 2004, employees whose earned income is less than $30,338 ($31,338 if married
filing jointly) may be eligible for advance payment of the Earned Income Credit
(EIC), with a maximum credit of $1,563. The new 2004 tables for calculating the
credits are included in Publication 15, Circular E, Employer's Tax Guide.
Eligible employees must complete a new W-5, Earned Income Credit Advance Payment Certificate each year. Copies of the forms may be obtained from the IRS.
|Social Security-Medicare Deductions||In 2004, the Social Security tax will be calculated at 6.2% on the first $87,900 of taxable wages resulting in a maximum Social Security tax deduction of $5,449.80. The 1.45% Medicare tax will apply to all taxable wages, as there is no wage cap.|
The New York State Payroll System calculates taxes based on the annual table.
There are no changes to the Federal Withholding Tax Rates for 2004.
To request a copy of Publication 15, 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.
New York State, City of New York, and City of Yonkers Resident Income Tax Withholding Rates have been reduced for employees with a Single status with annual taxable wages in excess of $100,000 and Married status employees with annual taxable wages in excess of $150,000. Supplemental rates have also been reduced.
The New York State, City of New York, and City of Yonkers Resident Income Tax Withholding Rate changes can be found in Publication NYS-50. To obtain a copy of this publication, visit the NYS Department of Taxation website at www.tax.ny.gov and select Forms and Publications / Forms & Instructions>Current Year Forms & Instructions / Withholding Tax>NYS-50.
|Questions||Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.|