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 2020 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 12/31/20 and are close to the 2020 deferred compensation maximum contribution limit of $19,500 (plus $6,500 for the catch-up contribution for employees over 50). This will help prevent a possible over-deferral for the 2020 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 $2,700 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 2020, $137,700 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:  OSPA now caps all PERS subject wages at $195,000.


As we anticipate the arrival of 2021, the following are the maximum amounts that impact taxes for tax year 2021.

Oregon Savings Growth Plan:  Amounts are unchanged from 2020.

PEBB Flexible Spending Accounts: The maximum annual contribution amount for the Health Care FSA $2,750 or Dependent Care FSA $5,000 per household or $2,500 if you are married and file taxes separately.

Social Security Taxes: For 2021, $142,800 is the maximum wage that is subject to social security.

PERS - for 2021 the PERS maximum wage subject to contributions is unchanged from 2020.  The limit for Tier1, Tier 2, and OPSRP is $195,000.


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
System Analyst
Oregon Statewide Payroll Services
155 Cottage Street NE, Salem, OR 97301
971-900-7628 (Cell)




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