On Dec. 17, an extensive package of tax cuts was signed into law resulting in more take home pay in 2011. The tax cut reduced the Social Security tax rate employees pay from 6.2 percent to 4.2 percent effective January 2011. This means for each $100 in wages, employees will have $4.20 withheld from their pay for Social Security instead of $6.20. The new Social Security tax break will have no effect on worker’s potential Social Security benefits, as they will still be based on their lifetime income.
Part-Time Adjunct Faculty do not contribute to the Social Security system but instead are members of an Alternate Social Security plan through Bencor. This plan is regulated by a separate Treasury regulation which was not part of the new tax cuts. Consequently, the amount withheld will not change for Part-time Faculty.
Should you have any questions or concerns, please feel comfortable in contacting one of our Payroll Staff at extensions 5218, 5927 or 5212.