The following is being provided in our continuing effort to keep you informed about the specifics of your pay and benefits. As always, if you have any other questions regarding your paycheck or your benefits, please contact Patricia Kelly at extension 7141.

2008 Tax Rate News

Social Security limits the amount of earnings subject to taxation. The wage base limit is one that increases each year and was $97,500 in 2007. For earnings in 2008, this base is $102,000 which results in a maximum employee contribution of $6,324.

Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) is set by statute at 6.2 percent. These OASDI/Medicare taxes are required payroll taxes that are paid by both the employee and the employer. In addition, the Medicare portion of 1.45% is on all wages and is unchanged from last year. The following chart highlights these changes and can be found at: http://www.socialsecurity.gov/pubs/10003.html

Social Security and Medicare taxes
Social Security taxes	2007	2008
Employee/employer (each)	6.2% on earnings up to $97,500	6.2% on earnings up to $102,000
Self-employed *Can be offset by income tax provisions	12.4%* on earnings up to $97,500	12.4%* on earnings up to $102,000
Medicare taxes	2007	2008
Employee/employer (each)	1.45% on all earnings	1.45% on all earnings
Self-employed *Can be offset by income tax provisions	2.9%* on all earnings	2.9%* on all earnings

2008 Tax deferred savings plans - Maximum Annual Contribution remains the same

The 2008 maximum annual contribution limit for retirement savings plans is $15,500, remaining the same as last year.   For employees who are age 50+ in 2008, the limit also remains the same as 2007 at $20,500.

If you qualify to exceed the $15,500 contribution limit and wish to maximize your contributions for retirement savings in your current tax deferred supplemental account, please contact Helen Caruso in the Benefits Office at ext 4394, or by email at carusoh@mail.montclair.edu

Retirement Readiness

Lunch and Learn seminars are provided each semester by the Alternate Benefit Program (ABP) vendors. For future seminars, if you have a topic you would like to suggest please let us know.

Supplemental savings plans, which are available to employees in any of the State pension plans, provide a significant tax deferred savings benefit. Information packets and enrollment forms are available in our Office of Employee Benefits.

If you would like any further information about supplemental savings, the ABP, or any of the State Pension Plans, please contact Patricia Kelly at kellyp@mail.montclair.edu or at ext. 7141.

Open Enrollment

The State is in the final stages of completing the Request for Proposal (RFP) for modifications in the State Health Benefits Plan. As a result, in this year only, there will be a second open enrollment period so that employees may make a selection from among the modified plans. That open enrollment period will be scheduled shortly in order to accommodate the implementation of the changes which are scheduled to take effect on April 1, 2008.