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Year 2014 Income Tax Changes and Withholding Information

Effective January 2014

 

Federal and State Income Tax Withholding

The annual federal withholding allowance is $3,950 for year 2014. The federal and state income withholding brackets have been revised for 2014. http://www.irs.gov/pub/irs-pdf/p15.pdf

 

Employee Social Security /OASDI and Medicare

The year 2014 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 $117,000 for 2014. There continues to be no cap on the Medicare wage base.

Tax Summary
Year 2013
Year 2014
Social Security/OASDI Rate
6.2 percent
6.2 percent
Social Security Maximum Wage Base
$113,700.00
$117,000.00
Maximum Social Security /OASDI Contribution
$7,049.40
$7,254.00
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
1.0 percent
1.0 percent
CA SDI Maximum Wage base
$100,880.00
$101,636.00

 

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 2013 Form W-4, you must file a new W-4 for year 2014 not later than February 16, 2014, in order to continue to claim exemption in 2014. 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 www.irs.gov.

  • Payroll Department

    Tuesday 30 September 2014
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  • Peralta Community College District

    The district comprises four campuses serving northern Alameda County.
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