Tax Forms and Information

MEMORANDUM

To: State Employees

From: Carol Mord, Manager, State Payroll

The following is information regarding tax changes for the year 2008.

Tax Withholding Rates

There are changes to the 2008 tax withholding rates for Federal, New York State, City of New York and City of Yonkers. This may result in a change to your net pay.

Social Security/Medicare Withholding

Social Security tax for the year 2008 is calculated at 6.20% on the first $102,000 of wages, resulting in a maximum deduction of $6,324.00. The tax rate has not changed, but there has been an increase in the wage cap for Social Security. The chart below reflects changes in the wage cap for Social Security over a 3 year period.

2006	2007	2008
$94,200	$97,500	$102,000

The Medicare tax for 2008 is calculated at 1.45% of all wages. The tax rate has not changed and there is no wage cap for Medicare tax.

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