Finance and Accounting Services and Human Resources are providing this information to inform employees of 2011 payroll withholding changes and an increase in the mileage reimbursement rate.
Payroll Withholding Taxes
The Federal Withholding Tax tables substantially changed for 2011. Included in the changes is a decrease in the Social Security withholding rate from 6.2% to 4.2%. This decrease is a result of a federal tax bill that was passed in late December. A few highlights of the 2011 tax changes and how they may impact the Wake Forest community are as follows:
Most students will probably see an increase in their tax withholdings due to the expiration of the “Making Work Pay Credit.” Generally, students do not pay Social Security tax, so they will not benefit from the reduction in Social Security taxes.
Mileage Reimbursement Rate Increase
Effective January 1, 2011, the Internal Revenue Service increased the maximum tax free mileage reimbursement rate to 51 cents up from 50 cents per mile. The University is adopting this new rate for all business travel that occurs on or after January 1, 2011. Please use the new reimbursement rate of 51 cents when preparing expense vouchers.
An updated travel form will be published on the Financial and Accounting Services website under “Travel and Entertainment Voucher.” Please use the voucher that corresponds with the appropriate travel dates. If you have any questions, please contact an Accounts Payable Representative.