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Paycheck reminders for 2021

Paycheck reminders for 2021

Health insurance premiums, retirement contributions and tax changes can all have an impact on your paycheck. Here are some things you may have noticed on your first paycheck of the new year.

New benefits

Did you enroll in any new benefits during Open Enrollment, or change your contribution to your Flexible Spending Account? You would have seen deductions for your 2021 premiums in your January paycheck, or in your December paychecks if you’re paid bi-weekly. Whether you’re paid monthly or bi-weekly, your 2021 FSA contributions began with your first paycheck in January.

A couple of additional reminders for members of the UC Health Savings Plan:

  • Confirm both your payroll deductions and UC’s contribution to your Health Savings Account.
  • If you’re contributing less than the IRS maximum for 2021 (increased to $3,600 for single coverage or $7,200 for family coverage, including UC’s contribution). You may increase your contribution at any time. And remember — the IRS allows people who are 55 or over to make an additional “catch-up” contribution of $1,000 a year.

Changing costs

Though UC works hard to keep costs for its medical plans stable, you may have seen a change in your premiums even if you didn’t change plans. Changes to employee contributions for single coverage across all pay bands range from increases of $0 to $12 per month.

Retirement contributions

UC’s voluntary Retirement Savings Program offers a convenient, tax-advantaged way to save for retirement. Check to make sure your contributions are where you’d like them to be. If you transitioned from casual to career status, you may have seen changes to your deductions for retirement benefits.

Tax changes

Depending on your situation, you may have seen a change in your January paycheck:

  • The OASDI (old age, survivors and disability insurance) tax is being withheld from income up to $142,800 in 2021. If you reached the maximum last year, your deductions restarted in January.
  • The Additional Medicare Tax restarted if your salary and wages exceed $200,000 in a calendar year.

If you have any questions about your paycheck, you can contact UCPath.

One final reminder – Be W-2 savvy

The deadline to request an electronic W-2 was Jan. 15, 2021. If you’ve signed up online, all notifications about your W-2/W-2c were sent to your preferred email address on file in your benefits account.

Remember that UC does not send actual W-2 statements to employees by email or text. You must sign in to UCPath using a safe, known link to view your electronic W-2 (if you enrolled to receive one). If you receive an email or text that has a link or an attachment for viewing your W-2, it is a phishing scam designed to gain your private information. Do not open any attachments or click on any email links that claim to give you access to your W-2!

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