OSPS E-News ~ 2016 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 2016 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 12/31/16 and are close to the 2016 deferred compensation maximum contribution limit of $18,000 (plus $6,000 for the catch-up contribution for employees over 50). This will help prevent a possible over-deferral for the 2016 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 ($2,550) or Dependent Care FSA ($5,000). Watch for the reports from PEBB and process according to their instructions.



Social Security Taxes: For 2016, $118,500 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 2016, $883,333 is the maximum wage that is subject to PERS for Tier 1 members.  $265,000 is the maximum wage that is subject to PERS for Tier 2 and OPSRP members.  OSPA now cap all PERS subject wages at $265,000.  The OSPS account will make p060 adjustments for any Tier 1 members that go over $265,000.  Please let OSPS know if you have any Tier 1 members who are retiring in December and will have over $265,000 in PERS subject wages.



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.

Thank you,

OSPS
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