Important Changes to Payroll and Benefits for All Employees
Please see these important changes to HR Payroll and Benefits information that you should be aware of as we move into 2011.
Social Security tax has decreased.
The tax rate for the OASDI (Social Security) tax has been decreased for 2011 from 6.2% to 4.2%. The maximum OASDI tax for 2011 is $4,485.60 (down from $6,621.60 for 2010).
The Advanced Earned Income Tax Credit has been discontinued.
Individuals who previously received this credit will no longer see this credit in the tax section of their pay stub in 2011.
Life insurance rates have decreased.
The premium rates for supplemental life insurance have also decreased this year. The new rates are on page 6 of the Benefits at a Glance document, which can be found on http://hr.vanderbilt.edu/secure/Benefits/ataglance.php.
Payroll deductions for savings bonds have been discontinued.
Effective Dec. 31, 2010, the U.S. Treasury no longer issues paper savings bonds and as a result payroll deductions for savings bonds have been discontinued. Individuals who previously participated by payroll deduction have received a letter from the Treasury to explain the change and that they can continue to participate in savings bonds by setting up an online account with Treasury Direct and having funds direct deposited (like a direct deposit to a savings account). More information is available at: http://www.treasurydirect.gov/indiv/help/TDHelp/help_ug_302-PRSPLearnMore.htm.
The 403(b) maximum contributions are unchanged for 2011.
The maximum elective contribution level for 2011 is $16,500 for faculty and staff under age 50, and $22,000 for those 50 and older. This limit applies to all elective contributions made by a participant to the Vanderbilt Retirement Plan (aggregated with any other employer-sponsored plan). For the Vanderbilt 403(b), elective contributions include basic and supplemental amounts, and do not include the mandatory amount.