Bulletin: 2019 Tax Withholding Changes and Employer-Sponsored Health Coverage W-2 Reporting (Posted December 13, 2018)

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2019 Tax Withholding Changes

Paychecks issued for the 12/31/18 pay period (payday 1/7/19) are the first for tax year 2019. Social Security and VDI taxes are withheld again for those employees who reached the maximum withholding in 2018. 2019 benefit deductions, including retirement contributions, also begin with this paycheck. Social Security and VDI taxes are withheld again for those employees who reached the max in 2018.

New federal and state withholding tax rates are in place for 2019.

The tax rates in effect for 2019 are summarized in the table below. You may update your federal and/or state income tax withholding allowances at any time by clicking View/Edit Withholdings from the Employee Center in Axess. See How To: Declare or Change Withholding Allowances for step-by-step instructions.

2019
Tax Deduction Code Description Tax Rate
Fed Withholding Federal Income Tax W-4 Rate
Fed MED/EE Medicare 1.45%
Addl Med Additional Medicare Tax 0.9% on wages earned in excess of $200,000
Fed OASDI/EE Social Security 6.2% on first $132,900 wages earned
CA Vol Dis/EE Short-Term Disability 1.0% on first $118,371 wages earned
CA Withholding State Income Tax DE-4 Rate

Please note:  If you claimed exemption from federal and/or state income tax withholding for tax year 2018 and wish to continue for tax year 2019, you are required to file an updated W-4/DE-4 in Axess by February 15, 2019.

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Employer Sponsored Health Coverage W-2 Reporting

Under the Affordable Care Act (ACA), employers are required to report on Form W-2 the cost of coverage under an employer-sponsored group health plan. This item will be part of your 2018 W-2 Form, reported in Box 12DD. This amount is included for informational purposes only; it is not taxable. Learn a full overview of Stanford W-2 Forms.

In addition to the W-2 Form, in compliance with the ACA, Stanford will issue a Form 1095 that reports the medical coverage made available to you by Stanford in 2018.

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