MEMORANDUM

TO:tttPrincipal Investigators, Fiscal Officers, and Employees

FROM:ttNelson Sakamoto, Director of Human Resources

SUBJECT:tRevised FY 2011-12 Fringe Benefits Schedule – Social Security Wage Base/Tax Rate Changes

ATTENTION All Principal Investigators/Fiscal Officers:

Effective January 1, 2012, the Social Security wage base will increase from $106,800 to $110,100. Earnings above the Social Security wage base in a given payroll year are not subject to the 6.2% Social Security taxes.  As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax.  See the RCUH Policy 3.510 RCUH Fringe Benefits Schedule for the updated RCUH Fringe Benefits Schedule effective January 1, 2012.

Please plan accordingly for these changes.