403(b) contribution changes
The IRS announced cost of living increases for dollar limitations on benefits and contributions for tax year 2023. The Social Security wage base increased from $147,000 to $160,200. The 403(b) elective contribution limit increased from $20,500 to $22,500. The "catch-up" limit increased from $6,500 to $7,500.
To enroll or change your employee contributions, please complete our online 403(b) Salary Reduction Form.
Form W-4 Employee’s Withholding Certificate
The IRS released a redesigned Form W-4 Employee’s Withholding Certificate for the 2020 tax year. This form is valid through the 2025 tax year.
Completing the W-4 is a complex process, particularly for married couples or individuals with multiple jobs or income streams. Please visit the IRS.gov/W4 website for documentation and a Tax Withholding Estimator (calculator) that can help you with Form W-4.
Members of the university community should know:
- New hires and current employees who require changes to withholding must complete Form W-4.
- Current Students and Non-Resident Aliens who claimed EXEMPT from Withholding must file a Form W-4 if they expect to have zero Federal Tax obligation. They should write EXEMPT or N/A in space below Step 4(c) on the Form W-4.
- Any exempt filing will be changed to S-0.
Please read more about IRS Form W-4 changes.
Federal Annual Standard Deduction for 2023
- Married, Filing jointly or qualified widow(er): $27,700, increased from $25,900 in 2022
- Single or Married, Filing separately: $13,850, increased from $12,950 in 2022
- Head of Household: $20,800, increased from $19,400 in 2022
NOTE: The personal exemption for tax year 2023 remains at 0, as it was for 2022. This elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act of 2017 for tax years 2018 through 2025.
Social Security Wage Base for 2023
- Social Security Taxable Wage Limit: $160,200, increased from $147,000 in 2022
- Social Security Tax Rate: 6.20%
- Maximum Social Security Tax: $9,932.40, increased from $9,114.00 in 2022
- Medicare Taxable Wage Limit: no limit
- Medicare Tax Rate: 1.45%
- Additional Medicare Employee Wage base: starts at $200,000
- Additional Medicare employee Tax Rate on over $200,000: 0.90%