January 2017 Payroll Notices

W-2 NOTICE:

As of Wednesday, 1/11/2017, the2016W-2s are available to active employees via the Staff & Employee Self Service (click on the Faculty and Staff link at the top of the lbcc.edu home page). When you sign into Employee Self Service using your network (e-mail) username and password, you will see the W-2 Forms tile. Viewing/printing your W-2 uses the same self-service process as viewing/printing your pay stub. If you have problems viewing your W-2, make sure that your browser does not have Pop-Up Blockers on. To find out how to take off Pop-Up Blockers click on the Employee PeopleSoft Help link on the Intranet at . Hard copies of the W-2s have also been mailed to your mailing address on file with us.

If you need a duplicate W-2, you can now print the information for yourself beginning with the 2013 tax year forward. You may also contact the Payroll Office at (562) 938-4463/64/66 to request a duplicate. If you are contacting the Payroll Office for a duplicate of your 2016 W-2, do not request a duplicate before February 1st. Give the post office a chance to get it to you. If you request a duplicate W-2 from Payroll, you must fill out the Request for Duplicate W-2 Form. The Request for Duplicate W-2 Form is available online at or from the Payroll Office (LAC T-1024 – next to HR). Note: If Payroll processes duplicate W-2s for you it may take several days. Do not make your request on the same day that you need it. Last minute requests may not be available by your timeline!

We receive many questions regarding the possible difference between the yearly earnings on an employee's last pay stub issued in 2016 and the amount of taxable earnings on the W-2's (Box 1: wages, tips, and other compensation). Here is the reason:

The amount on your pay stub is the total gross earnings that you were paid during the 2016 tax year at LBCC. (Hourly employees don’t forget December 2015 earnings that were paid in January of 2016. Earnings are taxable in the year that they are paid). The Box 1 wages and earnings on your W-2 represents these 2016 earnings plus any amounts that are imputed to income for taxable fringe benefits (value of GTL over $50,000, value of domestic partner health insurance), minus any pre-taxed deductions (tax sheltered annuity contributions (403b), deferred compensation contributions (457b), retirement contributions (STRS, PERS or ARS/APPLE) and/or Section 125 pre-tax deductions).

NEW 2017 INCOME TAX TABLES AVAILABLE:

New federal and state tax withholding tables are available on the LBCC Intranet at or . The federal and state income tax withholding brackets have been revised for 2017.

FEDERAL WITHHOLDING – FORM W-4:

You may want to secure a copy of the tables and consult with your tax advisor/preparer regarding the need to revise your W-4 “Employee’s Tax Withholding Certificate”. Your current W-4 form will remain active until you change it - - EXCEPT - - You MUST file a new or amended W-4 form if your filing status, exemption allowances or exempt status has changed since last year. If you claimed exemption from withholding tax on your 2016 W-4, you must file a new W-4 for 2017no later than February 15, 2017 to continue your exemption for tax year 2017. A withholding allowance of “Single” with zero exemptions will be used until a current and valid Form W-4 is received. Form W-4 is available on the LBCC Intranet at or or on the IRS website at . If clicking on the link does not work, copy/paste the URL in the address field of your browser.

STATE WITHHOLDING – FORM DE-4:

Unless you file a state Form DE-4, state tax withholding is based on your federal W-4. You may elect to have different federal and state exemption levels or specify a separate additional tax withholding amount by filing both forms. Form DE-4 is available on the LBCC Intranet at or or on the EDD website at . If clicking on the link does not work, copy/paste the URL in the address field of your browser.

PAYROLL & BENEFIT PARAMETERS SET by THE IRS for 2017:

  • The employee Social Security tax rate for 2017 remains at 6.2%. The maximum wages subject to Social Security/OASDI in 2017 has increased from $118,500 to is $127,200.
  • There is no Medicare wage cap for employees. The employee Medicare tax rate remains unchanged at 1.45%. The Additional Medicare tax, introduced in 2013, requires that employers withhold an additional 0.9% on wages paid to employees in excess of $200,000 in a calendar year. This additional tax must be withheld in the pay period in which wages are paid in excess of $200,000.
  • The maximum amount of employee elective deferrals for 403(b) and 457(b) plans remainsthe same at $18,000. Additional contributions for the age 50+ catch-up also remain at $6,000.
  • The mileage reimbursement rate for business miles,effective 1/1/2017, is 54 cents per mile.

UNIVERSAL AVAILABILITY NOTICE_403(b)

  • The IRS created retirement savings plans for various groups to encourage retirement savings by offering tax benefits. The 403(b), also known as Tax Sheltered Account (TSA), was developed for non-profit organizations.
  • All LBCC employees, except student workers and those who make $200 or less per month are eligible to participate in a 403(b) plan.
  • School employees’ contributions to a 403(b) are made through payroll deduction before taxes are taken out thus reducing your tax bill while saving for retirement. LBCC deductions are taken 10 times a year, February through June and August through December with no deductions in January or July.
  • For help setting up a 403(b), contact our 3rd Party Administrator, SchoolsFirst Federal Credit Union at 1-800-462-8328 extension 4727 or at .

NO VOLUNTARY DEDUCTIONS TAKEN FROM JANUARY PAY PERIOD PAYROLLS:

You may notice a difference in the amount of your net pay in the January Pay Period. This is because voluntary deductions, including employee health and welfare deductions, are notwithheld from January Pay Period earnings. Voluntary deductions are taken 10 times a fiscal year, August through December and February through June. There are no voluntary deductions in the July and January Pay Periods.