January 04, 2013
To: UT Faculty and Staff
From: Rob Chance, Director of Payroll
Re: Federal Tax Changes
Legislation passed earlier this week by the U.S. Congress will affect taxes deducted from paychecks beginning this month.
It's important to know how these tax changes will affect your pay.
Paychecks issued on Tuesday, Jan. 8, to employees paid biweekly will reflect the changes, and employees paid monthly will notice the changes in paychecks issued on Jan. 31.
Below is a summary of the changes passed by Congress:
Social Security Payroll Taxes (2 percent increase)
Medicare Tax Rate
Federal Withholding Tax Rates
You may contact the UT System Payroll Office with questions about the tax changes at (865) 974-5251 and http://payroll.tennessee.edu/. Campus and institute payroll offices also are available to help.
In some cases, employees may wish to adjust federal withholding amounts on W-4 statements as a result of these changes. Staff in the payroll offices can answer questions about this process and provide forms.