On Dec. 23, 2011, President Obama signed into law the Temporary Payroll Tax Cut Continuation Act of 2011. Included in the Act was a provision that temporarily reduced the OASDI (Social Security's Old-Age, Survivors and Disability Insurance) withholding rate from 6.2 percent to 4.2 percent for the first two months of 2012.
This change was effective with paychecks (and direct deposit) issued on or after Jan. 1, 2012. Because the law was enacted so close to the end of the calendar year, the IRS allowed employers until Jan. 31, 2012, to implement this withholding change.
For monthly paid UC employees, the change could not be implemented in time for the Jan. 1, 2012, pay due to the late issuance of the IRS instructions implementing the new tax rates. UC employees paid on Feb. 1, 2012, received a 2 percent refund in their Social Security tax because the Jan. 1 paycheck (or direct deposit) they received was subject to withholding at the old rate (6.2 percent). As a result, the net Social Security withholding for the Feb. 1 pay is 2.2 percent.
The UC Davis campus has announced it is offering its Voluntary Separation Program (VSP) again as an opportunity for employees to self-identify their willingness to voluntarily resign their UC Davis employment.
ANR has made the decision to NOT offer the VSP to ANR employees located either on or off campus.
If you have any questions, you may contact Human Resources Coordinator Robert Martinez at (530) 752-3467 or Staff Personnel Executive Director Linda Manton at (530) 752-0495.
A program that allowed faculty, academics, and staff to voluntarily reduce work hours in exchange for a corresponding pay reduction is scheduled to end. The Staff and Academic Reduction in Time program, or START, was enacted as a temporary measure to help the University of California cope with budget shortfalls will end on Dec. 31, 2010.
John Fox, UCOP director of Human Resource Policies, stated, "Although many employees have appreciated the program and it has helped UC save on salaries, this is the right time for it to end."
In 2009 alone, UC achieved salary savings of roughly $16 million through employee participation in START.
Although many employees have appreciated the program and it has helped UC save on salaries, UC administration will not recommend an extension to the START program.