Beginning Januay 1, 2017 KTRS and CERS employee retirement contributions will no longer be exempt from FICA and Medicare taxes. KTRS withholdings will be subject to Medicare taxes and CERS will be taxable to both FICA and Medicare taxes. This will have an impact on the employees net take home pay.
KTRS: Teacher Pay of $50,000 x 12.855% = 6,427.50 x 1.45% = $93.20 annual reduction in take home pay.
CERS: Classified employee pay of $25,000 x 6% = 1,500 x 7.65% = $114.75 annual reduction in take home pay.
The amount per pay will most likely fall between $3 and $12 per pay depending on the salary level of the staff member. Free free to call payroll if you have any questions.