Question about OASDI (Social Security) taxes
Hello, everyone. I am a postdoc that is just starting here at UCLA in Applied Math, and I have a question as to what to expect on my first paycheck. I am aware that I will be automatically enrolled in the UC Defined Contribution retirement plan, which will extract 7.5% of my gross earnings and set them aside for me. According to the various UCLA websites I have visited, I (along with my fellow postdoc-employees) will be doing this as a Safe Harbor participant, meaning that I am not eligible for any further retirement befefits (such as the 403(b)). However, this also seems to indicate that I am not going to be subject to the OASDI portion of FICA (though I will still be subject to Medicare). Could any of you out there that are postdoctoral-employees (not paid direct or fellowship) verify that this is indeed the case by checking out your paystub and seeing if OASDI has or has not been withheld? I would greatly appreciate it if you could. Thanks!
As far as I understand Safe
January 19, 2007 - 7:26pm — ajayAs far as I understand Safe Harbor DCP is used for those without access to social security and specifically UCRP (a pension plan if you like). This should not affect your ability to participate in the 403b plan at the university (or obviously IRAs outside of UCLA). Please try to get your 403 eligibility verified by calling CHR. There are some upcoming events on this too: http://www.postdoc.ucla.edu/node/941. (Sorry I cannot be much help with the OASDI stuff since I am not on Safe Harbor.)
Cheers!
Ajay
"I refuse to believe that everybody refuses to believe the truth" - Lisa Simpson
Hi, Ajay - thanks for the
January 20, 2007 - 1:16pm — pygmalionHi, Ajay - thanks for the reply. Let me direct you to a webpage that I got some of my information from:
http://www.gdnet.ucla.edu/gss/postdoc/pdleave.htm
Near the bottom of the page, it says:
“Postdoctoral Scholars - Employee” contribute to the University of California Defined Contribution Plan as Safe Harbor participants and are not eligible for the University of California Retirement Plan.
So, this is why I thought that I would be a Safe Harbor contributor and not eligible for the UCRP, though I now understand that the 403(b) plan is separate from UCRP, and I may contribute if I want. Under this assumption, I then found this page:
http://www.payroll.ucla.edu/edb/e2bene.asp
This page explains that an employee in the Safe Harbor program "contributes to DCP SAFE HARBOR instead of paying OASDI". And, "an employee in the Safe Harbor Program contributes 7.5% to DCP and pays a Medicare tax of 1.45%."
So, I am still wondering. If anyone reading this knows that they are classified as "postdoc-employee", could you please check your latest paystub and verify that a) 7.5% of your paycheck went to the defined contribution plan and b) only medicare and not OASDI taxes were withheld? I would greatly appreciate this. Thanks!
Hi Pygmalion, 1) You can be
January 20, 2007 - 6:14pm — ajayHi Pygmalion, 1) You can be sure that the 7.5% DCP (401a) will be deducted from your paycheck instead of OASDI - this is the case for all my "postdoc-employee" friends joining after Jan 2005. (See also http://map.ais.ucla.edu/portal/site/UCLA/menuitem.789d0eb6c76e7ef0d66b02...). In fact this gives you more control over the said money than if it went as OASDI. I guess that leaves only the 1.45% of Medicare as your uncertainty.
2) Since OASDI specifically stands for social security, whereas "FICA" includes both OASDI and Medicare. From the two quotes above, there is not doubt in my mind that you will see the 1.45% Medicare deduction in your paycheck, for neither of them uses the term FICA.
I await others to confirm this here.
Cheers and welcome to UCLA!
Ajay
"I refuse to believe that everybody refuses to believe the truth" - Lisa Simpson
Post new comment