A library employee recently noticed an increase in tax withholding on his 2/16/11 pay check and asked me for information. My research discovered some interesting information that should be shared library-wide. For those of you that may be asking “Why did my Federal Withholding increase in 2011,” or “Why is my net pay less than it was?” here is a website that addresses the two questions rather nicely: http://forums.blackbaud.com/blogs/fundaccounting/archive/2011/01/10/why-did-federal-withholding-increase-in-2011-why-is-my-net-pay-less-than-it-was.aspx

In layman’s term the Federal Government reduced the Social Security tax also know as (FICA-OASDI) from 6.2% to 4.2%, effective January 1, 2011. It shows up on our pay advices as “Fed OASDI/EE”. What we didn’t hear was that the “Jobs and Growth Tax Relief Reconciliation Act” of 12/2011 did not extend the “Making Work Pay Credit Act” of 2003, which reduced federal withholding and resulted in more income going into employees’ paychecks.

What all of this mean for biweekly paid employee is that the 1/5/11 & 1/19/11, paychecks did not reflect the reduced 2% Fed OASDI/EE. To correct this problem Payroll department placed the refund for both of these pay periods in the 2/2/11 paycheck. For monthly paid employees your end of January pay check will reflect the correct deduction for your Fed OASDI/EE.

In contrast, the expiration of the “Making Work Pay” credit will result in an increase to the Federal Withholding tables. For most biweekly employees, you’ll see an increase in Federal Withholding on the 2/16/2011 pay check.  That amount should be the normal federal withholdings in future checks. For Monthly employees your end of February pay check will reflect the increase in your “Fed Withholding”.

I would advise everyone to consult with their tax accountant or tax consultant on how to change one’s W4 forms to offset any undesired increases from the above changes reflecting in your pay checks.  Here is the new IRS tax Withholding:  http://www.irs.gov/pub/newsroom/notice_1036.pdf

Hope this information was helpful.

Website References:

Blackbaud. (2010). The FundWare Post: The Official Blog of FundWare: Why did Federal Withholding increase in 2011? Why is my net pay less than it was? Retrieved from http://forums.blackbaud.com/blogs/fundaccounting/archive/2011/01/10/why-did-federal-withholding-increase-in-2011-why-is-my-net-pay-less-than-it-was.aspx

Department of the Treasury Internal Revenue Service. (2010). Notice 1036: Early Release Copies of the 2011 Percentage Method Tables for Income Tax Withholding. Retrieved from http://www.irs.gov/pub/newsroom/notice_1036.pdf

Fivecentnickel.com. (2011). Did Your Federal Tax Withholding Increase? Here’s Why… Retrieved from http://www.fivecentnickel.com/2011/01/07/did-your-federal-income-tax-withholding-increase-heres-why/

HubPages. (2010). Federal Payroll Tax Withholding Tables for 2010, 2011 65. Retrieved from http://hubpages.com/hub/Federal-Payroll-Tax-Withholding-Table-for-2009–2010

Intuit. (2011). Small business, rejoice. Federal Tax Withholding Tables and Social Security Tax changes for 2011: Overview: Retrieved from http://payroll.intuit.com/support/kb/2000996.html

IRS.gov. (2010). Payroll Tax Cut to Boost Take-Home Pay for Most Workers; New Withholding Details Now Available on IRS.gov. Retrieved from http://www.irs.gov/newsroom/article/0,,id=232590,00.html

–Sheena Waggoner

Space is available for the remaining Skill Awareness Workshops. For these workshops, attendance is voluntary and open to all library employees, per supervisor approval.

Workshop II – Leo Agnew, Developing Conflict Competency. March 3, 10:00 – 11:30 a.m., room 4F51-A Ellis

Workshop III – Greg Holliday and Jill Hermsen, An Introduction to Emotional Intelligence. March 16, 10:30 a.m. – 12:00 p.m., room 4F51-A Ellis

Workshop IV – Interactive skit, MU Trainers’ Network, April 7, 10:00 a.m. – 12:00 p.m., room 4F51-A Ellis

Workshop #2 will be led by Leo and considers the skills needed to increase one’s conflict competency. Conflict in the workplace is unavoidable. A 2009 survey by the Center for Creative Leadership found that 85 percent of leaders experience conflict on a regular basis. As such, the question isn’t one of avoiding conflict but rather what you will get out of conflict when it does occur. Participants will identify different types of conflict, discuss the difference between trust and trustworthiness, and identify behaviors that push their ‘hot buttons.’ In addition, participants will be able to reflect upon the skills needed to demonstrate conflict competency, e.g., compassionate listening.

Workshop #3 will be led by Dr. Greg Holliday and Dr. Jill Hermsen, both of UM System HR. Greg is the Director of Talent Management and Jill is the Assistant Director. This workshop will focus on the set of skills that involve the ability to monitor one’s own and others’ feelings and emotions, to distinguish among them, and to use this information to guide one’s thinking and action.

The final workshop is an interactive skit based on the book written by Patrick Lencioni ‘The Five Dysfunctions of a Team.’ This is a dynamic training program performed by members of the MU Trainers’ Network in which audience members interact with each other and with skit characters, assessing character behavior and comparing their recommendations for improving the skit team. In addition, the skit provides audience members with the opportunity to talk about the listening skills demonstrated by the characters as well as conflict competency, self-monitoring of emotions, etc. As such, this workshop helps to bring together the skill awareness gained in the previous three workshops.

How do you sign up for these workshops? Check your e-mail for Outlook invitation notices. Simply click on ‘Accept’ to add the workshop to your calendar. Or, send Leo an e-mail to reserve a seat (AgnewL@missouri.edu).

Hello to Kelli Hansen, Special Collections Librarian. Kelli completed her MIS in December 2010 from the University of Texas-Austin. The Special Collections Librarian position is based in Ellis Library and has duties which include: providing reference service to all print and microform collections held by the department; assisting and instructing patrons in the use of all collections in all formats including the Internet; developing, designing, revising, and updating of the Special Collections & Rare Books departmental website and provides leadership and technical competence in developing and managing electronic finding aids, databases, exhibits, and other Internet sites; and participating in collection promotion, outreach activities (including bibliographic instruction), exhibits, and creation of user guides.