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Year 2017 Income Tax Changes and Withholding Information

Effective January 2017


Federal and State Income Tax Withholding

The federal and state income withholding brackets have been revised for 2017.


Employee Social Security /OASDI and Medicare

The year 2017 Social Security/OASDI tax rate for employees is 6.2 percent. The Medicare tax rate remains at 1.45 percent. The Social Security/OASDI maximum wage base increases to $127,200 for 2017. There continues to be no cap on the Medicare wage base.

Tax Summary
Year 2016
Year 2017
Social Security/OASDI Rate
6.2 percent
6.2 percent
Social Security Maximum Wage Base
Maximum Social Security /OASDI Contribution
Medicare Rate
1.45 percent
1.45 percent
Medicare Maximum Wage Base
No limit
No limit
Maximum Medicare Contribution (1.45%)
No limit
No limit
CA SDI – PT Faculty Only
.90 percent
.90 percent
CA SDI Maximum Wage base


Federal Withholding — Form W-4

Individuals were notified to complete or amend Form W-4 “Employee’s Withholding Allowance Certificate” if they filed “status exemption” allowances. Or if your exempt status has changed since your last W-4 was filed. If you claimed exemption from withholding tax on your year 2016 Form W-4, you must file a new W-4 for year 2017 not later than February 16, 2017, in order to continue to claim exemption in 2017. If you no longer claim exempt status, you must file a new W-4 form.
Unless you file a state Form DE-4, state tax withholding is based on your federal W-4. You may elect to have different federal and state exemption levels or claim state personal estimate withholding allowances by filing both forms. Complete print, sign and submit your form to the Payroll Department.


Advance Earned Income Credit (AEIC)

Based in recent changes to the tax law, the Advance Earned Income Credit has been eliminated, and Form W-5 discontinued effective January 1, 2011. Eligible employees may continue to file for the earned income credit when the complete their individual tax returns. Information for claiming the credit is available in IRS Notice 797 at

  • Payroll Department

    Monday 18 December 2017
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  • Peralta Community College District

    The District comprises four colleges serving northern Alameda County.