OSPS E-News ~ 2012 Maximum Amounts at Year End

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

To Agency Payroll Contacts:

We want to remind you about maximum amounts that impact taxes at year end. These include the 2012 maximum amounts for the Oregon Savings Growth Plan (OSGP), PEBB Flexible Spending Accounts (FSA) and social security.

Oregon Savings Growth Plan: Please call Kathy Gannon at OSGP (503 378-5798) if your agency has employees retiring on 12/31/12 and are close to the 2012 deferred compensation maximum contribution limit of $17,000 (plus $5,500 for the catch-up contribution for employees over 50). This will help prevent a possible over-deferral for the 2012 tax year.  In addition, before the end of the year, OSGP will run an audit report for employees who contribute to both the Roth 457 IRA and the traditional 457 deferred comp. They will look for employees with combined contributions that may exceed the maximum for the tax year.

PEBB Flexible Spending Accounts: PEBB will run a report for employees who may exceed the maximum annual contribution amount for either the Health or Child Care FSA's ($5,000 for each). Watch for the reports from PEBB and process according to their instructions.

Social Security Taxes: For 2012, $110,100 is the maximum wage that is subject to social security. If you need to reverse a check or stop an ACH and re-write a November payment, determine if the employee has reached the maximum. If so, check to see if you  need to recalculate the social security subject wages and taxes.

See the Statewide Payroll Reference Manual, Year End Payroll Process for additional information: http://www.oregon.gov/DAS/EGS/FBS/OSPS/docs/pubs/process/ProcessYearend.pdf

If you have questions, contact the OSPS Help Desk, OSPS.Help at das.state.or.us<mailto:OSPS.Help at das.state.or.us> or 503-378-6777, option zero.
Katherine Bremser
Training Coordinator
Oregon Statewide Payroll Services
Financial Business Systems
Enterprise Goods and Services
Department of Administrative Services
503-373-0738
Online Resource Center: http://oregon.gov/DAS/EGS/FBS/OSPS/
Data Classification: Level 1 - Published

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