Payroll Policies

PR13 Withholding of Federal Income Tax

Policy Status: 

Active

Policy Steward: 

Corporate Controller / Payroll

Contents:

PURPOSE:

To outline the Internal Revenue Services Federal Income Tax withholding requirements which affect the University and its employees.

RATES:

Federal earned income tax is withheld on a graduated scale from an employee's gross pay, the applicable percentage being determined by the amount of the employee's earnings.

WITHHOLDING ALLOWANCES:

An employee with excess itemized deductions may be entitled to claim additional withholding allowances. These allowances are determined by using the Worksheet to Figure Your Withholding Allowances. The Worksheet and instructions are available from your Human Resources Representative.

EXCESS WITHHOLDING:

Employees desiring to have more than the maximum standard deduction withheld must use the Worksheet and the Instruction sheet, step 4, to determine an additional dollar amount of withholding. The computation would be transferred to the W-4.

FOREIGN NATIONALS:

See International Information for specific information concerning withholding of Federal Income Taxes and Internal Revenue regulations which apply to foreign nationals.

FURTHER INFORMATION:

For questions, additional detail, or to request changes to this policy, please contact the Payroll Office.

 

Effective Date: January 21, 1987 
Date Approved: January 21, 1987 
Date Published: January 21, 1987 (Editorial changes- October 24, 2013)

Most Recent Changes:

  • October 24, 2013 - Editorial changes. Addition of policy steward information, in the event that there are questions or requests for changes to the policy.

Revision History (and effective dates):

  • May 30, 2013 - Editorial changes. Renamed "ALIENS" section to "FOREIGN NATIONALS." Deleted "CHANGE IN NUMBER OF DEPENDENTS" section.
  • June 14, 2006 - Revision History expanded.
  • January 13, 2006- Editorial changes made "Withholding Allowances" section; link to IRS site for the worksheet referenced in the "Excess Withholding" section.
  • February 27, 1987 - Renamed "Percent Method" section "Excess Withholding." Revised "Withholding Allowances" section.
  • August 4, 1983 - Revisions made to Rates, Percent Method and Change In Number of Dependents sections.
  • April 17, 1978 - Revised verbiage in "Change In Number of Dependents."