How do I adjust my Federal Income Tax withholding?
Federal income tax withholding is adjusted by submitting a new Employee's Withholding Allowance Certificate (Form W-4) to Payroll on or before the established Employee Due Dates.
The amount of allowances you claim on line #5 of your Form W-4 can be changed to increase or decrease the amount of your withholding for Federal Income Tax (FIT). For example:
- When you increase your number of allowances, the amount of FIT withheld is reduced.
- When you decrease your number of allowances, the amount of FIT withheld is increased.
Payroll Management is no longer required to remit a copy of the employee’s Form W-4 directly to the Internal Revenue Service (IRS) for anyone claiming more than 10 withholding allowances for a given calendar year. Additionally, you may elect to have an extra, fixed dollar amount withheld for FIT from each pay. By specifying an "Additional Amount" (see line #6 of Form W-4), be aware that this withholding is over and above the amount based on your allowances.
Can I claim that I am Exempt from Federal Income Tax withholding?
Yes, providing you meet both of the following conditions for exemption as indicated on line 7 of the Form W-4:
- Last year you had a right to a refund of all Federal income tax withheld because you had no tax liability
- This year you expect a refund of all Federal income tax withheld because you expect to have no tax liability Payroll is no longer required to remit a copy of the employee’s Form W-4 to the Internal Revenue Service (IRS) for any employee claiming Exempt. However, claiming Exempt is valid for only one calendar year at a time. In order to claim Exempt for a new calendar year, you must submit a new Form W-4 to Payroll Management by February 15th in order to maintain the exempt status. If a new form is not received, Payroll Management is required to withhold FIT as if the employee is filing Single with zero allowances. Some additional restrictions apply. Please read Form W-4 completely before claiming Exempt.
If I forgot to change my W-4 form, can I fill it out now and have it processed retroactively?
No, Federal law prohibits retroactive processing for taxes.
Why is it important to file an Employee’s Statement Of Non Residence In Pennsylvania And Authorization to Withhold Other State’s Income Tax PA Department of Revenue Form (REV-420 AS)?
Currently, Pennsylvania has a reciprocal tax agreement with the states of New Jersey, Maryland, Indiana, Ohio, Virginia, and West Virginia. Employees who are residents of these states can claim an exemption from having Pennsylvania income tax withheld by submitting PA Department of Revenue Form REV-420 AS to Payroll Management. Please note, the University is only required to withhold income tax for state’s in which we have a presence. Therefore, the University only withholds and remits Pennsylvania and New Jersey income taxes.If you are a resident of one of the other reciprocal states you may need to file estimated taxes with your state of residence.
What changes need to be made when I change my marital status?
If the change in marital status involves a name change, you should apply for a Social Security card with your new name and have your department change the name on the Employee Record and submit it through the proper channels. This must occur in order for the Payroll Department to make the necessary changes to the HRS Information system.
If I reached my social security tax maximum with my former employer, can I exempt myself from social security taxes for the rest of the year with the University?
No, each employer must deduct FICA according to his/her year-to-date figures for gross earnings. If you have excess tax withheld during a calendar year, you must claim the excess on Form 1040, which must be filed on or before April 15th of the following year.
What is the Social Security (FICA) maximum for 2013?
The 7.65% tax rate is made up of two components:
- Social Security benefits(OASDI) 6.20% tax rate
- Medicare 1.45% tax
Social Security wages are capped at $113,700 for 2013. Medicare wages are not capped and continue after the $113,700 has been reached.
If I am collecting Social Security and am still working, do I still have to have FICA taxes withheld from my pay?
Yes, regardless of your age or eligibility to collect social security benefits, all wage payments are subject to Social Security and Medicare tax withholding.
How does moving affect my Payroll records?
Your permanent home address is used to determine your liability for certain local taxes. The University is required to collect local tax from residents of those municipalities in which the University maintains a facility. If you are a resident of the City of Philadelphia, you must have city wage tax withheld at the resident rate regardless of where you are physically working. If you live outside the City and work within the City of Philadelphia you must have city wage tax withheld at the nonresident rate. If you live outside of the City of Philadelphia and work at a University facility located outside the City, you will have the applicable local tax withheld for that municipality.
Your most current home address must be on file in the Payroll Department to assure receipt of University mailings; e.g., W-2 forms, correspondence, etc. This is extremely important since payroll averages approximately 3000 returned W-2's each year for incorrect addresses. A fee will be charged to issue a replacement Form W-2.
Address changes must be submitted immediately. Employees may take advantage of Self-Service Banner (SSB) through TUportal to update this information. Students must complete a Student Worker Payroll form or Personal Data form to update the address in Payroll Management. Changes to address information for students through OWLnet do not get made in the Self-Service Banner (SSB).
What are the tax rates in my area?
Click here for a list of tax rates in your area.
How do I claim a refund of Philadelphia City Wage tax?
Currently the City of Philadelphia permits the University to reimburse employees for Philadelphia wage taxes when they meet certain requirements as outlined in Section 9.11 of the University Employee Handbook. An employee can request the refund at any time during the calendar year, but no later than December 5th. Click here for the City Wage Tax Refund form. Please review the requirements for requesting the reimbursement on the Forms web page prior to submitting the form. Proper documentation must accompany all requests or they will be returned.
What action should I take if I authorize a deduction and it was not taken from my earnings?
Contact the Payroll Department immediately if a deduction was not processed. An Administrative Specialist will investigate the problem and suggest appropriate action.
If I authorize a deduction, in which month will it take effect?
As long as the deduction authorization is received in accordance with submission due dates it will be taken in the deductions are usually applicable for goods and services in the current month.
Is it possible to obtain a salary advance or an early release of my paycheck?
No, requests for payroll advance and/or early release of paychecks prior to the normal payday will not be approved under any circumstances. Should an employee be away during the normal pay date, arrangements should be made with the department administrator to forward or deposit the check.
When is the money credited to an account when an employee authorizes direct deposit?
The University’s regular method of payment to employees is direct deposit.
For monthly payrolls, deposits are made no later than the actual pay date.
For biweekly payroll, deposits are made no later than the Friday pay date.
Is it possible to credit part of a paycheck to a savings account and part to a checking account?
Yes, if you are a regular, full-time or part-time employee, direct deposits may be made into five different accounts. Students are only permitted to direct deposit to either a checking account or a savings account.
What action should I take if I lose my paycheck?
Notify your supervisor and the Payroll Department immediately. The Payroll Department will submit a "Stop Payment" to the bank. Payroll will reissue the check after receiving the confirming stop payment notice from the bank. A replacement fee will be deducted from the reissued check to recover the stop payment fee charged by the bank.
If you recover the lost check after notifying the Payroll Department but before receiving a new check, do not try to cash or deposit the check, because the check will be rejected by the bank. Return the check to the Payroll Department, and a replacement will be issued.
Can an individual employee review his/her own payroll/personnel record?
Yes, specific policies and procedures are described in Section 15.3 of the Temple University Employee Handbook, "Access To Employee Personnel Files." With reasonable notice, employees may request an appointment with the Office of Human Resources to review the file once a year.
When is payday at the University?
- For most of the University faculty, administration and staff, the pay date is usually the last working day of the month.
- The remaining bargaining unit employees, part-time employees and all student workers are paid Biweekly with a pay date of every other Friday.
What does the heading "Imputed Income" mean on my payroll check stub?
Based upon IRS regulations, the value of employer-provided group term Life insurance in excess of $50,000 is taxable income to the employee, and the employer is required to withhold FICA and FIT on this benefit.
What is the schedule for taxing employees for Graduate tuition in accordance with Internal Revenue Code Section 127 and what taxes will be withheld?
In accordance with the Economic Growth and Tax Relief Act of 2001 passed on June 7, 2001, Internal Revenue Service Code Section 127 (employer-provided educational expenses), the value of tuition remission benefits provided to eligible Temple University employees taking graduate courses in excess of the federal threshold of $5,250, are subject to federal income tax withholding. In addition, it is also subject to FICA, Medicare and State withholding.
The Payroll Withholding Schedule will be as follows with the amount of the tuition benefit spread evenly over the number of pay periods indicated:
|Biweekly Payroll:||4 biweekly periods beginning in the 2nd pay period of October.|
|Biweekly Payroll:||4 biweekly periods beginning in the 2nd pay period of March.|
Summer Session I
|Biweekly Payroll:||2 biweekly periods beginning in the 2nd pay period in June|
Summer Session II
|Biweekly Payroll:||2 biweekly periods beginning in the 1st pay period in August|