Federal Tax Changes Effective January 1, 2011

As a result of recent regulatory changes effective January 1, 2011, federal tax changes have been programmed and will be reflected in the pay calculations for the new year. Biweekly employees will see these changes on their pay statements dated January 14, 2011. Monthly employees will see these changes on their pay statements dated January 25, 2011. In addition, all checks dated on or after January 1, 2011 included these calculations.

The communication below will be included with the individual employee’s online pay statement email notification for the January 14, 2011 and January 25, 2011 pay dates. Please share this information with all employees in your department. If they have questions specific to their withholding requirements, they should contact their accountants for assistance with tax advice or visit the IRS website for additional information.

We appreciate your continued support. If you have any questions, please contact our Payroll team at (919) 684-2642.

Biweekly Communication to be Distributed with Online Pay Statement Notification

Based upon recent federal tax changes that were effective January 1, 2011, some employees may see an increase in their pay. The changes that affect the 2011 pay calculations are included below.

  1. Federal Income Tax tables were updated. As a result of these changes to federal tax calculations, some employees may see an increase in their pay.
  2. The OASDI employee portion of the Social Security tax was reduced from 6.2% to 4.2% for calendar year 2011 only. Employees may see an increase in pay due to a decrease in the OASDI taxes withheld.
  3. The Medicare tax rate will remain unchanged at 1.45%.
  4. The North Carolina Department of Revenue has not released any changes to the tax tables for state taxes.

Please note that these changes are included in your biweekly pay dated January 14, 2011.

Monthly Communication to be Distributed with Online Pay Statement Notification

Based upon recent federal tax changes that were effective January 1, 2011, some employees may see an increase in their pay. The changes that affect the 2011 pay calculations are included below.

  1. Federal Income Tax tables were updated. As a result of these changes to federal tax calculations, some employees may see an increase in their pay.
  2. The OASDI employee portion of the Social Security tax was reduced from 6.2% to 4.2% for calendar year 2011 only. Employees may see an increase in pay due to a decrease in the OASDI taxes withheld.
  3. The annual OASDI limit remains unchanged at $106,800.00.
  4. The Medicare tax rate will remain unchanged at 1.45%.
  5. The North Carolina Department of Revenue has not released any changes to the tax tables for state taxes.

Please note that these change are included in your monthly pay dated January 25, 2011.