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STATE OF CONNECTICUT |
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NANCY WYMAN
COMPTROLLER |
OFFICE OF
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775 |
MARK OJAKIAN
DEPUTY COMPTROLLER |
M E M O R A N D U M
TO:
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Agency Payroll & Personnel Officers
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FROM:
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Gary Reardon, Director Payroll Services
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DATE:
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October 22, 2002
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SUBJECT:
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Social Security Wage & Tax Information
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Federal & State Filing Status
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Advance Payment of Earned Income Credit |
Social Security Wage & Tax Information
- Effective January 1, 2003 the Social Security wage base
will increase to $87,000.00. The maximum employee share contribution will be
$5,394.00.
- There continues to be no limit on wages subject to the
Medicare tax. All covered wages are subject to a 1.45% contribution from
employees.
- The combined FICA/Medicare tax rate will remain at 7.65%
for tax year 2003 (FICA tax rate is 6.2% and Medicare tax rate is 1.45%).
Federal & State Filing Status
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In accordance with Federal Circular E and State Circular
CT, all employees filing exempt status are required to complete a new W-4 form
by the 15th of February of each year. If employees are filing
exempt status from both Federal and State taxes, then you must obtain a new
Federal form, W-4 and a new State form CT-W-4. To assist the agencies,
we have included in your paperwork this week (if applicable) a report of
employees we have identified as filing exempt for tax purposes.
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If an employee does not comply with this request, you are
to begin withholding Federal and State taxes at the applicable rates,
Fed = single with zero withholding
State = flat 4.5% (D with special tax indicator = 07)
Advanced Payment of Earned Income Credit
For those employees that have a form W-5 (Advance Payment
of Earned Income Credit) on file for tax year 2002 - this form will become
invalid on December 31, 2002.
- If the employee is eligible for advance EIC payments
for tax year 2003, a new form W-5 must be submitted - refer to
memorandum 94-15 for coding instructions.
- If the agency does not receive a new form W-5, the
deduction must be closed effective with the January 10, 2003, paycheck.
GR:vv/Payroll Services/ 10/2002
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