UAB has been notified that retirement contributions are now exempt from the Jefferson County Occupational Tax retroactive to Jan. 1, 2010.

As a result of this change, Payroll Services will make the adjustments to the tax withholding retroactive to that date. Any refunds due to employees will be reflected in a reduction of county taxes withheld from the April 30, 2010 biweekly and monthly pay date.

This modification comes in addition to the actions Payroll Services implemented in January in connection with the same tax:

• Occupational tax withholding rate changed from 0.50% to 0.45%
• Professional exemption was removed

While these changes may be small in terms of actual dollars, they result in a positive outcome for employees and a reduction in the amount of county tax withheld from your pay.

NOTE:  The information in this message applies ONLY to Jefferson County Occupational Tax withholding changes effective Jan. 1, 2010. It does NOT address refunds for prior year withholding of that tax. No information has been received to date on the status of prior year tax refunds.