IRS Tax Information Sheet Year 2022
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 $305,000.
- The employee’s mandatory contributions of 5% will cease at $15,250.00
- The employer pre-tax 8% contribution limit will shut off at $14,000 under the State Legislation enacted in July 2010. This limit was increased under State Legislation (Chapter 14) to $175,000 effective July 1, 2018.
- Active Group Life Insurance benefit is capped at $1,067,500.
- The Long Term Disability maximum pensionable base monthly salary is $25,416.66.
Public Employees Retirement System (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 2021 limit increased from $137,700 to $142,800. 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 $19,500 per annum for employees who are less than age 50 at the end of the year.
- Up to $26,000 per annum for employees who attain age 50 before the end of the year.
Tax$ave Program – Flexible Spending Accounts
maximum annual limits
- Up to $2,500 for Unreimbursed Medical Expenses
- Up to $5,000 for Dependent Care
- Up to $270 for mass transit commutation costs
- Up to $270 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.