HR/Payroll Bulletin - Spring 2002

Topic:		Calculation of Mass state income tax
Effective Date:		May 2002
What's New?		The way Massachusetts state income tax is calculated for each pay period will change when we start using PeopleSoft. The total amount of Massachusetts state income tax withheld for the entire calendar year should not change.
Why?		Massachusetts exempts $2000 of Social Security payments from state taxes. Our current system exempts the first $2000 paid to an employee in each calendar year. PeopleSoft calculates state tax using a formula that spreads the Social Security withholding of $2,000 evenly throughout the year. This results in nearly equal state-tax deductions throughout the year (assuming no salary changes). Note: Hourly employees will notice variation if their hours worked change from week to week.
Who does this affect?		Everyone who is paid by the University will have his or her Massachusetts state income tax calculated using the new formula.
Benefits		The amount of Massachusetts state income tax deducted in each pay period will stay the same throughout the entire calendar year instead of changing when the Social Security withholding of $2,000 is reached.
For more information		If you have any questions about the new formula for Massachusetts state income tax, please contact: the Payroll Department at X 6-4475, or email Payroll@brandeis.edu

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