|To:||All UPS Agencies|
|From:||Ronald S. Mitchell, Director|
|Subject:||New Federal Tax Rates for Calendar Year 1998|
Effective payday January 2, 1998, the new Federal Tables for income tax withholding and advance earned income credit payments will be used in calculating tax deductions. We will make reference to the rate changes within the message section of the employee check stub for January 2nd payday. Due to the new tax rates for 1998, employees net pay may change.
Other rate changes to be aware of in 1998 are listed below:
One withholding allowance amount for biweekly payroll period will change to $103.85.
Maximum wage base for Social Security Taxes will change to $68,400.
Maximum Social Security Tax employees and employers will each pay is $4,240.80.
Continuation of no maximum wage base for Medicare Taxes.
If you have any questions on these matters, please contact the UPS Help Desk at (504) 342-8928.