OSPS E-News ~ 2014 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 2014 maximum amounts for the Oregon Savings Growth Plan (OSGP), PEBB Flexible Spending Accounts (FSA), Social Security, and PERS.

Oregon Savings Growth Plan: Please call Kathy Gannon at OSGP (503 378-5798) if your agency has employees retiring on 12/31/14 and are close to the 2014 deferred compensation maximum contribution limit of $17,500 (plus $5,500 for the catch-up contribution for employees over 50). This will help prevent a possible over-deferral for the 2014 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 the Health Care FSA ($2,500) or Dependent Care FSA ($5,000). Watch for the reports from PEBB and process according to their instructions.

Social Security Taxes: For 2014, $117,000 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.

PERS: For 2014, $866,666 is the maximum wage that is subject to PERS for Tier 1 members.  $260,000 is the maximum wage that is subject to PERS for Tier 2 and OPSRP members.  If you have an employee that has reached the PERS maximum you need to change the P010 screen to make them PERS ineligible for the remaining of the year.  This will prevent excess payment going to PERS.  Remember to change the employee back to PERS eligible for 2015.

If you have questions, contact the OSPS Help Desk, OSPS.Help at oregon.gov<mailto:OSPS.Help at oregon.gov> or 503-378-6777, option zero.

Melissa Tominaga
OSPS Accountant
DAS/EGS/FBS/Oregon Statewide Payroll Services
Phone: 503-373-0738
Fax: 503-378-3518

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://omls.oregon.gov/pipermail/osps-news/attachments/20141124/fe90be20/attachment.html>