2011 Tax Withholding Changes (Posted January 3, 2011)

Paychecks issued for the 12/31/10 pay period (payday 1/7/11) are the first for tax year 2011. Social Security and VDI
taxes are withheld again for those employees who reached the maximum withholding in 2010. 2011 benefit
deductions also begin with this paycheck.

New federal and state tax withholding rates are in place for this paycheck, and several compulsory payroll tax rates
have changed for 2011. The California Short-Term Disability rate has increased from 1.1% to 1.2%. The Social
Security tax rate has decreased from 6.2% to 4.2% as the result of the Tax Relief Act of 2010.

The tax rates in effect for 2011 are summarized in the table below. You may update your federal and/or state income
tax withholding allowances at any time by the Edit W4 and DE4 Information on the Employee Information

Tax Deduction Code Description Tax Rate

Fed Withholding Federal Income Tax W-4 Rate
Fed MED/EE Medicare 1.45%
Fed OASDI/EE Social Security 4.2% on first $106,800 wages earned
CA Vol Dis/EE Short-Term Disability 1.2% on first $93,316 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 2010 and wish
to continue for tax year 2011, you must file an updated W-4/DE-4 by February 15, 2011.