The OASDI taxable wage limit increases from $84,900 to $87,000. The tax rate remains 6.2% (with a matching employer contribution).
Medicare taxable wage limit remains unlimited and the tax rate remains 1.45% (with a matching employer contribution.)
The federal income tax exemption has increased from $3000 to $3050.
The federal income tax tables have also changed as of January 1, 2003.
The FUTA rate/limit remains unchanged.
(1) For every division, increase the social security medicare limit; also update your SUTA, workers compensation and state disability rates as of January 1.
(2) With the 2003 update, a new BKPRFTAX.B is provided which contains federal/state tax table updates and changes.
(3) Make any health insurance, retirement plan, cafeteria plan deductions, etc. that might change as of January 1.
Interim change effective July 1, 2003:
The federal tax table has been changed. Users can make this change by downloading the latest update.
The federal income tax exemption has increased from $3050 to $3100.