Attention payroll liaisons: The following information is important since you may assist individuals with payroll processes. This information, without some of the specific details, will be shared with all UNT System employees soon. Please ensure this information is shared with all employees in your department, particularly employees without regular access to email at work.

Employees at University of North Texas, UNT Health Science Center, UNT Dallas and UNT System Administration need to be aware of the following changes to payroll and to certain processes for UNT System employees scheduled for implementation in January 2013.

Payroll Tax Holiday Expires December 31, 2012

Beginning in January 2013, employees at UNT System institutions may notice a slight change in net pay on their monthly paycheck. The Payroll Tax Holiday implemented in 2010 is set to expire December 31, 2012. The tax cut reduced the percentage of Social Security Tax from 6.2 percent to 4.2 percent.

The Payroll Tax Holiday expiration means the January 2, 2013, paycheck will include a two percent increase in the Social Security deduction, resulting in a smaller net pay. The following example is provided to help illustrate the projected impact on employee paychecks.

Additional Medicare Tax on Wages Paid more than $200,000 on or after January 1, 2013

Section 9015 of the Patient Protection and Affordable Care Act (PPACA) requires employers to withhold an additional .9 percent Medicare Tax from annual wages in excess of $200,000 beginning with wages paid on or after January 1, 2013. There is no employer match for this additional Medicare Tax.

For information on the new additional Medicare Tax, see “Questions and Answers for the Additional Medicare Tax” on the Internal Revenue Service website: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax.

Changes to Hourly and Salary Supplemental Payroll Beginning in January

Effective January 2013, the deadline to process timesheets for hourly paid employees will be extended,  allowing departments more time to gather, enter and approve time for hourly paid employees. (see deadline schedule attached below). With this change, hourly employees will be paid on the regular pay date and the current hourly supplemental will be eliminated.

Beginning January 2013, BSC Payroll will also move the date of the salary supplemental for all other employees to the third business day after the regular pay date. (see pay schedule attached below) This additional time will enable those payments to be distributed via direct deposit.

What do these changes mean for departments?

• Increased efficiency and cost savings across the UNT System.
• Departmental timekeepers have more time to process timesheets.
• Departmental personnel will have a limited number of paper checks to distribute on supplemental pay dates.
• Most employees will be paid on regular pay dates.
• In most cases, hourly paid employees will receive payment on one check for time worked during a given period.

Attached below are:

• Changes to the hourly timesheet deadline
• Changes to salary supplemental pay dates

Employees Encouraged to Receive IRS Forms Electronically and Sign Up for Direct Deposit

It is almost that time of year again when employees will begin to prepare for the tax season. Employees are encouraged to sign up to receive the annual IRS Form W-2 electronically. Employees are also encouraged to enroll in direct deposit.

Specific information will be provided in the forthcoming general announcement to all employees.

Verify Contact Info Online for Payroll & Tax Forms

Employees are reminded to confirm their contact information.

Payroll liaisons who still have paper checks waiting to be picked up need to mail checks to the employees’ address noted on the check. Additionally, correct email addresses are needed to ensure notification of W-2 availability is sent to employees participating in electronic distribution.  Employees should confirm their email addresses through Employee Self-Service on the MyUNT/MyHSC portal.  Instructions will be provided in the information distributed to all employees.