OSPS E-News ~ OSPA Updated For 2011 Tax Calculations

[Announcements from OSPS to the users of the Oregon State Payroll Application]

The Oregon Statewide Payroll Application (OSPA) has been updated  with
2011 tax tables and calculations for FICA, federal and state withholding
tax.  These changes are effective with December payrolls paid January 1,
2011.   Source information is contained in the following.

 

IRS Publication 1036 

http://www.irs.gov/pub/irs-pdf/n1036.pdf

Defines the change in Social Security tax for employees reducing the tax
from 6.2% downward to 4.2%.  The employer portion of Social Security tax
remains at 6.2%.  The 2011 Social Security wage base limit is $106,800.
Federal withholding calculations are defined in the publication both in
terms of the value of a withholding allowance (Page 1) and the actual
percentage calculation of tax withholding (Table 4 on Page 3)  

 

OSPS will watch for the posting of Publication 15 (Circular E) for tax
year 2011 and notify everyone.  Publication 15 will contain all of the
information in 1036 but will also have the tax tables as well as all of
the other relevant tax advisories and rules.  We note that Publication
15-B Taxable Fringe Benefits for 2011 has already been posted.
http://www.irs.gov/pub/irs-pdf/p15b.pdf

 

 

Oregon Withholding Tax Formulas

http://www.oregon.gov/DOR/forms/business/withholding_formulas_150-206-43
6_2011.pdf

New this year is a phase-out of the subtraction for federal tax withheld
for annual incomes of $125,000 or greater.  OSPA has been programmed
with the Monthly formulas shown on Pages 5 & 9.  We are told that DOR
will update this tax publication soon to add the display of tax tables
for easy reference.  

 

Please let us know if you have any questions about these changes.  

 

 

Sharon McKeehan, Manager

Oregon Statewide Payroll Services

DAS/State Controller's Division

155 Cottage Street NE,  U-50

Salem, OR  97301-3969

(503) 378-6777 ext. 230

Visit our Online Resource Center: http://www.oregon.gov/DAS/SCD/OSPS/

 

 

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