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P•tr. Neal Evans <br /> October 13, 1980 <br /> Page 5 <br /> (a} The employee's earnings under the new system are <br /> the same as under the present system- For income <br /> tax withholding purPO, s• the FICA 'eX that bhi <br /> county PqLYs on behalf of the em�slo}*ee muss • l in <br /> in the'employee's w�-2 earnings as i�.l�xstrated= <br /> Salary $ 9,422.41 <br /> ,Add: Employe'e!s FICA <br /> P employer 877-� <br /> aid by , <br /> (6.13% x $9.422.41} lq <br /> fringe benefits. -including the retirement <br /> (C) Employee <br /> plan, remain unchanged. <br /> in the example above, the. emPloYe'ho'however, <br /> are the'same under both systems: however, under <br /> the near system, the employee's net -ta7;e-home Pay <br /> increases by $35.41 Per year. <br /> Eitiblights of the new system arev <br /> 1, 'Where is an increasintlet three C7elPmit, <br /> for employees earning es <br /> $25,9M <br /> 2. There will not be a deduction for FICA taxes r <br /> i; on the employee's paycheck.. <br /> the <br /> ' 3, Income taxes withheld are o <br /> FI nt behalf eOfithe em- <br /> paid by CA tax the county <br /> Foyee is subject to income taxes. .but not subject <br /> to FICA taxes. <br /> 4. The employee's annual W-2 eaXnisags remain the <br /> same. This amount is considered tfie emialcayee`s <br /> total pay. <br /> 5, The benefit deductions anchor coverages will <br /> not change. <br /> Example of FICA II Accounting Change for the county <br /> 'IM II <br /> Traditional Gross Wage $ 1 155.49 <br /> Gross Wage $10,000.0D l 155.19 <br /> 613.00 FICA Taxes <br /> ZE <br /> 'FICA 'faxes —�------�'"�' Total County Cost $10,5'77.b0 <br /> Total county Cost $10,613.00 <br />