Social Security and Medicare
Withholdings on County Salaries:
Changes Effective
January 1, 2011
University of Georgia
CAES Business Office
215 Conner Hall
Athens, GA 30602
706-542-2373
agbusoff@uga.edu
Changes Effective January 1, 2011
• UGA Payroll Department:
– will no longer withhold Social Security and
Medicare from county portion of UGA Cooperative
Extension employee salaries.
– will no longer report Social Security and Medicare
employee withholdings or employer contributions
to the IRS for the county portion of UGA
Cooperative Extension employee salaries.
Changes Effective January 1, 2011
• CAES Business Office:
– will no longer bill counties for reimbursement of
the employer portion of Social Security and
Medicare
• Monthly TRS Billing Statements:
– Monthly billing for Teachers Retirement (TRS)
employee and employer contributions will
continue and will be unaffected by changes in
Social Security and Medicare withholdings
Changes Effective January 1, 2011
• County cooperating boards:
– must begin withholding Social Security and
Medicare taxes from UGA Cooperative Extension
employees’ county salaries
– must begin reporting employee county salary
withholdings and employer contributions of Social
Security and Medicare to the IRS
Changes Effective January 1, 2011
• These changes are to the process of reporting
Social Security and Medicare to the IRS
• Counties will report employee withholdings
and employer contributions directly to the IRS
• UGA will no longer withhold and report county
salaries to the IRS on the counties’ behalf
• These changes do NOT affect UGA or County
budgets
Changes Effective January 1, 2011
• These changes do NOT affect employees on a
UGA/county contract
• These changes will result in proper reporting
of UGA Cooperative Extension employees’
county salaries to the IRS
• These changes will reduce incorrect salary
reporting on W-2s at the end of each tax year
Changes Effective January 1, 2011
• The following deductions should be taken from UGA
Cooperative Extension employees’ county salaries
beginning January 1, 2011:
–
–
–
–
–
Teachers Retirement (5.53% as of July 1, 2010)*
Federal Tax Withholdings
State Tax Withholdings
Social Security Tax Withholdings (6.2%)**
Medicare Tax Withholdings (1.45%)
* Teachers Retirement is deducted only for benefits-eligible employees who are enrolled in TRS
**Social Security Taxes should NOT be withheld from extension employees’ salaries who are
members of the Federal Civil Service Retirement System (CSRS) or extension employees who
are temporary/part-time. Membership in the CSRS or temporary/part-time status makes
employees exempt from Social Security contributions.
Example A: Full-Time Employee
• John Doe has a county salary of $12,000/yr
• Prior to January 1, 2011, County deducts the
following:
– Gross county salary per month:
– Teachers Retirement (5.53%):
– Federal Tax:
– State Tax:
– Net County check:
$1,000.00
$ 55.30
$ 38.00*
$ 33.27*
$ 873.43
*Tax withholding amounts are for example only
Example A: Full-Time Employee
• John Doe has a county salary of $12,000/yr
• Effective January 1, 2011, County deducts the
following:
–
–
–
–
–
–
–
Gross county salary per month:
Teachers Retirement (5.53%):
Federal Tax:
State Tax:
Social Security Tax (6.2%):
Medicare Tax (1.45%):
Net County check:
$1,000.00
$ 55.30
$ 38.00*
$ 33.27*
$ 62.00
$ 14.50
$ 796.93
*Tax withholding amounts
are for example only
Example B: Employee with Federal
Retirement (CSRS)
• Jane Smith has a county salary of $12,000/yr
• Prior to January 1, 2011, County deducts the
following:
– Gross county salary per month:
– Teachers Retirement (5.53%):
– Federal Tax:
– State Tax:
– Net County check:
$1,000.00
$ 55.30
$ 38.00*
$ 33.27*
$ 873.43
*Tax withholding amounts are for example only
Example B: Employee with Federal
Retirement (CSRS)
• Jane Smith has a county salary of $12,000/yr
• Effective January 1, 2011, County deducts the
following:
– Gross county salary per month:
– Teachers Retirement (5.53%):
– Federal Tax:
– State Tax:
– Medicare Tax (1.45%):
– Net County check:
$1,000.00
$ 55.30
$ 38.00*
$ 33.27*
$ 14.50
$ 858.93
*Tax withholding amounts are
for example only
Example C: Temporary/Part-Time
Employee
• Bob Jones has a county salary of $6,000/yr
working 50% time
• Prior to January 1, 2011, County deducts the
following:
– Gross county salary per month:
– Federal Tax:
– State Tax:
– Net County check:
$ 500.00
$
0.00*
$
9.39*
$ 490.61
*Tax withholding amounts are for example only
Example C: Temporary/Part-Time
Employee
• Bob Jones has a county salary of $6,000/yr
working 50% time
• Effective January 1, 2011, County deducts the
following:
– Gross county salary per month:
– Federal Tax:
– State Tax:
– Medicare Tax (1.45%):
– Net County check:
$ 500.00
$
0.00*
$
9.39*
$
7.25
$ 483.36
*Tax withholding amounts
are for example only
Questions?
Contact:
Liz Bray
215 Conner Hall
CAES Business Office
elbray@uga.edu
706-542-9005