IRS Tax Information Sheet Year 2016
Revenue Reconciliation Act
The Revenue Reconciliation Act requires the University Hospital to cap annual pensionable earnings for those
Alternate Benefit Program employees hired July 1, 1996 or later. Pensionable earnings
are capped at
- The employee's mandatory contributions of 5% and will cease at $13,250
- The employer pre-tax 8% contribution limit will shut off at $11,280 under the State Legislation enacted in July 2010.
- Active Group Life Insurance benefit is capped at $927,500.
- The Long Term Disability maximum pensionable base monthly salary is $22,083.
Public Employees Retirement Systems (PERS) Maximum Contribution Limit
PERS members enrolled on or after July 1, 2007 contribute up to a compensation limit based on the annual maximum wage for Social Security deductions. The 2016 limit remains unchanged at $118,500. Members who earn in excess of the annual compensation limit will be enrolled in the
Defined Contribution Retirement Program (DCRP) unless otherwise waived. The employee contribution for DCRP is 5.5% with a 3% employer match.
Annual Tax Deferral Limits
Section 457- New Jersey State Employees' Deferred Compensation Plan
- Up to $18,000 per annum for employees who are less than age 50 at the end of the year.
- Up to $24,000 per annum for employees who attain age 50 before the end of the year.
Tax$ave Program – Flexible Spending Accounts
maximum annual limits
- Up to $2,500 for Unreimbursed Medical Expenses
- Up to $5,000 for Dependent Care
Commuter Tax$ave Program- monthly limits
- Up to $130 for mass transit commutation costs
- Up to $255 for parking at work or park and ride sites *
* You cannot elect to defer University parking fees if you are already having pretax parking deducted from your paycheck.