Ithaca College

Effective with the first paycheck of 2011 (January 7 for non-exempt staff and January 14 for exempt staff), you will notice a change to your Federal tax withholding and your Social Security tax withholding.

In December, President Obama signed the Tax Relief Act of 2010. This act reduces the employee’s portion of social security tax from 6.2% to 4.2%. However, the Making Work Pay Credit which was a $400.00 a year reduction in Federal Income taxes for most employees expired on December 31, 2010.   As a result you will see less Social Security tax withheld and more Federal Income tax withheld.   For more information please visit the IRS website at www.irs.gov.

 Please feel free to contact the Payroll Office at (607) 274-3874 or (607) 274-3133 with any questions.