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 2021 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 12/31/21 and are close to the 2021 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 2021 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 $2,750 or Dependent Care FSA $5,000 per household or $2,500 if married and file taxes separately. Watch for the reports from PEBB and process according to their instructions.

Social Security Taxes: For 2021, $142,800 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 2021,  OSPA now caps all PERS subject wages at $197,730


As we anticipate the arrival of 2022, the following are the maximum amounts that impact taxes for tax year 2022.

Oregon Savings Growth Plan:  The new limit for 2022 is $20,500, with an additional $6,500 catch up for  age 50+ for a total of $27,000.  If 2022 is one of the last three years preceding the calendar year of an employee’s normal retirement age, the employee may contribute up to $41,000.

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 2022, $147,000 is the maximum wage that is subject to social security.

PERS - PERS has not updated the their max subject wages for 2022.  Will send out communication at later date with any updates.



Best Regards,

Vangie Barizo
System Analyst
Oregon Statewide Payroll Services



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