2010 Payroll Tax Notice

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					                                 2010 Payroll Tax Notice

The standard deduction amounts for 2010 remain unchanged at $11,400 for married
couples filing jointly or surviving spouses and $5,700 for single taxpayers and married
taxpayers filing separately, while increasing to $8,400 for heads of households ($8,350
in 2009). The personal exemption amount for 2010 is $3,650, unchanged from 2009.

Nebraska tax rates & brackets for 2010 remain the same as 2009.

The 2010 Social Security tax rate will remain at 6.2%, the same as it was for 2009, and
the Medicare tax rate will remain at 1.45%, the same as it was for 2009. The taxable
wage base (the maximum amount of earnings on which Social Security taxes is paid)
remains at 106,800.00 in 2010, the same as it was for 2009. There is no taxable wage
base for the Medicare portion of the tax.

Faculty, staff and students, are reminded that the “EXEMPT” status from Federal and
State income tax withholding expires February 15, 2010 for W-4 Forms submitted on
or before December 31, 2009. Individuals who qualify and wish to remain exempt
from Federal and State income tax withholding for the 2010 tax year should complete
a new 2010 W-4 Form and forward it to Payroll, 205 EAB, before February 15, 2010.

Faculty and staff should be aware of the difference between the “gross year-to-date”
earning amount shown on the final 2009 pay advice and the Federal and State taxable
earnings also on the final 2009 pay advice (included on the 2009 W-2 Form, box 1).
The difference is a result of sheltering various deductions as follows:
   • Tax sheltered retirement deductions reduce taxable income. Income taxes are
       not due until amount is received.
   • Health and dental insurance premium deductions reduce taxable income.
       Social Security and Medicare taxes also are reduced by premium deductions.
   • Life insurance premium deductions for up to $50,000 coverage reduce taxable
       income. Social Security and Medicare taxes also are reduced by premium
       deductions. Premium deductions for coverage over $50,000 DO NOT reduce
       taxable income.
   • Long term disability premium deductions reduce taxable income. Social
       Security and Medicare taxes also are reduced by premium deductions.
   • Accidental death and dismemberment premium deductions reduce taxable
       income. Social Security and Medicare taxes also are reduced by premium
       deductions.
   • Reimbursement account deductions reduce taxable income. Social Security
       and Medicare taxes also are reduced by this deduction.
•   Parking deductions reduce taxable income. Social Security and Medicare taxes
    also are reduced by this deduction.
•   Vision care premium deductions reduce taxable income. Social Security and
    Medicare taxes also are reduced by this deduction.
•   Dependent life insurance premium deductions DO NOT reduce taxable
    income. Social Security and Medicare taxes ARE NOT reduced by premium
    deductions.
•   Long term care premium deductions DO NOT reduce taxable income. Social
    Security and Medicare taxes ARE NOT reduced by premium deductions.