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Payroll Tax Information

 

FICA

FICA taxes are broken down into two parts: Social Security and Medicare. Temple University is required to withhold FICA taxes for all employees for whom it is applicable. Undergraduate and Graduate students who currently enrolled in a minimum of 6 credit hours for the Fall and Spring semesters and a minimum of 3 credit hours during each of the Summer Sessions are exempt from FICA taxes.  Foreign Nationals on F1, J1 visas who have not stayed more than five years in the United States as a student or two years as a visiting teacher/researcher may also be exempt from FICA taxes. Also, certain fellowships and scholarships are exempt from FICA taxes.

 

Current FICA Tax Rates:

  • Social Security 6.2% *See Note (1)
  • Medicare 1.45%

Certain types of deductions, such as medical benefits, medical spending, qualified parking and transportation benefits, and dependent care may reduce the FICA taxable income for an individual.

Wages paid in excess of $200,000 to high-earner employees will be subject to an extra 0.9% Medicare tax that will be withheld from those employees’ wages.

FIT

Temple University is required to withhold Federal Income Tax (FIT) for all employees for whom it is applicable. Certain fellowships and scholarships, as well as Foreign Nationals who qualify for treaty benefits, are exempt from FIT.

Certain types of deductions, such as retirement, medical benefits, medical spending, dependent care, qualified parking and transportation benefits may reduce the FIT taxable income for an individual.

There is not one specific amount or percentage of income that the University must withhold for an individual. Taxation is based upon an individual’s filing status (Single or Married) and the number of allowances that he claims. The federal Form W-4 is the document that must be used to make this election. For specific amounts, refer to the IRS tax charts by clicking the link below.

 

SIT/SUI

Temple University is required to withhold both State of Pennsylvania Income Tax (SIT) and State Unemployment tax from compensation of resident employees for services performed either within or outside Pennsylvania, and from wages of nonresident employees for services performed within Pennsylvania.

Certain types of deductions, such as medical benefits, may reduce the SIT taxable income for an individual.

Pennsylvania has reciprocal agreements with six states:  New Jersey, Maryland, Indiana, Ohio, Virginia, and West Virginia.  Under these agreements, one state will not tax the others’ residents on employee compensation that is subject to employer withholding.  Reciprocal agreements apply only to compensation, not to other classes of income.

Employees who are residents of New Jersey or one of the other reciprocal states who would like to take advantage of the reciprocal agreement must complete Pennsylvania Form REV-420, Employee's Statement of Non-Residence in Pennsylvania and Authorization to Withhold Other State's Income Tax and submit the form to Payroll Management.

Please be advised, Temple University is not required to withhold the reciprocal states withholding tax and will not withhold the other states taxes.  Therefore you may be required to file estimated taxes in your resident state.  We recommend that you seek tax advice before making this election.

Current Income Tax Rate for Pennsylvania: 3.07%

Current Unemployment tax rate for Pennsylvania: 0.07%

 

Local Taxes

Temple University currently withholds local wage taxes for municipalities in which it has a physical presence, such as a campus, physicians practice, or other facility. Many municipalities have a local wage tax of 1.0% and/or a one-time Occupational tax and/or an Emergency and Municipal Services Tax (EMST). Residents of the City of Philadelphia must pay the 3.928% wage tax regardless of where they are physically located.

 

Local, Regional and National Tax Rates

 

 Tax Current Rate   More Information
FICA-Social Security 6.2000% -Note (1) IRS
FICA-Medicare 1.4500% -Note (2) IRS
FICA-Medicare (Additional) 0.9000% -Note (3) IRS
Federal Withholding 14.0000% -Note (4) IRS
Federal Withholding Per Appropriate Tax Table IRS
Pa. State Income Tax 3.07% State of PA
Pa. State Unemployment Insurance 0.07% State of PA
City of Philadelphia Resident Tax 3.924% City of Philadelphia
City of Philadelphia Non-Resident Tax 3.495% City of Philadelphia
Upper Dublin Township Wage Tax 1.0000% Local Tax Rates
Upper Dublin Township EMST Wage Tax $4.33 monthly payroll
$2.00 bi-weekly payroll
Local Tax Rates
Abington Township Wage Tax 1.0000% Local Tax Rates
Abington Township EMST Wage Tax $4.33 monthly payroll
$2.00 bi-weekly payroll
Local Tax Rates
Harrisburg Wage Tax 1.0000% Local Tax Rates
Harrisburg Township EMST Wage Tax $4.33 monthly payroll
$2.00 bi-weekly payroll
Local Tax Rates

 

   Note (1) $117,000 cap
   Note (2) No Cap

   Note (3) Wages in Excess of $200,000
   Note (4) Foreign Employee-Country Has No Treaty & Employee is paid a Fellowship

 

Request For Re-issue of W-2/1042-S

W-2

  • W-2 forms for beginnng with calendar year 2011 are available electronically on the ADP W-2 Services website for registered employees at any time. ADP will maintain a maximum of 3 years of W-2 forms online in accordance with IRS regulations**.

  • W-2 forms for calendar year 2010 can be obtained from the Payroll Management office. The electronic copy of the 2010 W-2 form in SSB on TUPortal has been removed effective February 18, 2013.


All requests for a previous year W-2 form must be in writing by submitting a Request for Replacement/Reissue Tax Document that can be obtained on the HR forms website.

**Internal Revenue Service regulations only require employers to retain copies of employee W-2 forms for three calendar years plus the current.

1042-S

All requests for re-issues for 1042-S must be done in writing by submitting the following form: click here

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