OSPS E-News ~ Maximum amounts at year end

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

Payroll Professionals,



We want to remind you about maximum amounts that impact taxes at year end. These include the 2019 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 if your agency has employees retiring on 12/31/19 and are close to the 2019 deferred compensation maximum contribution limit of $19,000 (plus $6,000 for the catch-up contribution for employees over 50). This will help prevent a possible over-deferral for the 2019 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 $2,650 or Dependent Care FSA $5,000 per household or $2,500 if you are married and file taxes separately. Watch for the reports from PEBB and process according to their instructions.



Social Security Taxes: For 2019, $132,900 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 2019, the maximum wage that is subject to PERS for Tier 1 members is $933,333  .  The maximum wage that is subject to PERS for Tier 2 and OPSRP members is $280,000.  OSPA now caps all PERS subject wages at $280,000.  The OSPS accountant will make P060 adjustments for any Tier 1 members that go over $280,000.  Please let OSPS know if you have any Tier 1 members who are retiring in December and will have over $280,000 in PERS subject wages.



As we anticipate the arrival of 2020, the following are the maximum amounts that impact taxes for tax year 2020.



Oregon Savings Growth Plan:  For 2020, the maximum contribution limit, for members age 50 and younger, is $19,500.00.  The catch up contribution, for members over 50 yrs. old, has increased to $6,500.00.  To summarize, members who are older than 50 yrs. old, have an annual limit of $26,000 ($19,500 + $6,500).



PEBB Flexible Spending Accounts: The maximum annual contribution amount for the Health Care FSA $2,700 or Dependent Care FSA $5,000 per household or $2,500 if you are married and file taxes separately.



Social Security Taxes: For 2020, $137,700 is the maximum wage that is subject to social security.



PERS: Refer to the E-News recently sent out communicating PERS changes in the upcoming year.



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,

Vangie Barizo
Accountant
Oregon Statewide Payroll Services
155 Cottage Street NE, Salem, OR 97301
503-373-0738 (Direct)
503-378-3518 ( Fax)
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