Bulletin: 2014 Tax Withholding Changes and Employer-Sponsored Health Coverage W-2 Reporting (Posted December 12, 2013)
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2014 Tax Withholding Changes
Paychecks issued for the 12/31/13 pay period (payday 1/7/14) are the first for tax year 2014. Social Security and VDI taxes are withheld again for those employees who reached the maximum withholding in 2013. 2014 benefit deductions, including BeWell incentives, also begin with this paycheck.
New federal and state withholding tax rates are in place for 2014. Updated state withholding tax rates have been applied beginning with the 1/7/14 paycheck.
The tax rates in effect for 2014 are summarized in the table below. You may update your federal and/or state income tax withholding allowances at any time by clicking the "Withholding Allowances" link on the "Employee / Time & Pay" section in Axess. Click here for step-by-step instructions.
| Tax Deduction Code | Description | Tax Rate |
|---|---|---|
| Fed Withholding | Federal Income Tax | W-4 Rate |
| Fed MED/EE | Medicare | 1.45% |
| Addl Med | Additional Medicare Tax | 0.9% on wages earned in excess of $200,000 |
| Fed OASDI/EE | Social Security | 6.2% on first $117,000 wages earned |
| CA Vol Dis/EE | Short-Term Disability | 1.0% on first $101,636 wages earned |
| CA Withholding | State Income Tax | DE-4 Rate |
Please note: If you claimed exemption from federal and/or state income tax withholding for tax year 2013 and wish to continue for tax year 2014, you are required to file an updated W-4/DE-4 in Axess by February 15, 2014.
Employer Sponsored Health Coverage W-2 Reporting
Under the Affordable Care Act, employers are required to report on Form W-2 the cost of coverage under an employer-sponsored group health plan. This item will be part of your 2013 W-2 Form, reported in Box 12DD. This amount is included for informational purposes only; it is not taxable. For a full overview of Stanford W-2 Forms, please click here.