Federal and State Taxes
Federal and state regulations require KSU to deduct certain taxes from employee compensation. All tax withholdings are reflected on the employee’s paycheck or advice under the heading “Deductions Statutory.”
The federally mandated Medicare tax is calculated at 1.45% of an employee’s taxable gross income and is matched by KSU. This tax deduction is indicated on an employee’s pay statement as Med/EE. The code Med/ER is the employer's contribution. Student assistants, graduate assistants, and federal work study students are exempt from Medicare tax. In certain situations, non-resident aliens may also be exempt, depending on their Visa status and their country of origin.
Effective for 2013, an additional amount of 0.90% will be withheld for Medicare tax on subject employees who earn in excess of $250,000.00 (married filing status), $200,000.00 (single, head of household) or $125,000.00 (married, filing separately). The 0.90% is calculated on excess wages only.
Social Security Tax
The federally mandated Social Security tax is calculated based on 6.20% of an employee’s taxable gross income and is also matched by KSU. This tax deduction is indicated on an employee’s paycheck or advice as OASDI/EE. The code OASDI/ER is the employer's contribution. In general, all benefited employees are subject to Social Security tax. Most non-benefited employees are exempt but in lieu of social security they must participate in the Georgia Defined Contribution Plan. Student assistants, graduate assistants, and federal work study students are exempt from Social Security tax well as the Georgia Defined Contribution Plan. In certain situations, non-resident aliens may also be exempt from Social Security tax, depending on their Visa status and their country of origin.
The Maximum Taxable Wage Base for Social Security tax is:
Income Tax Withholding
Federal income taxes are withheld from an employee’s paycheck in accordance with IRS tax schedules as specified by the employee’s tax withholding status and exemptions indicated on the W-4 form on file with Human Resources. Employees may update their federal tax withholding form (W-4) at any time using the ADP self-service application. Certain special payments such as vacation payouts, severance pay, and non-deductible relocation expenses are taxed at the federally mandated supplemental rate which is 25% as of 2015.
State income taxes are withheld from an employee’s paycheck in accordance with Georgia Department of Revenue tax schedules as specified by their tax withholding status, exemptions, and allowances indicated on the G-4 form on file with Human Resources. In the event that an employee does not perform their employment duties in Georgia, they will be taxed in accordance with the tax schedules and state withholding forms mandated by their state of residence. Employees may only update their state withholding status by completing a new hard-copy form (G-4 or other state form) and submitting it to Human Resources either in person or sending it to campus mail drop 9120.
Reducing Taxable Wages and Tax LiabilityA number of benefit premiums and/or plan contributions are designated as pre-tax deductions. Certain plans, such as medical, dental, vision, and flexible spending accounts will reduce the taxable wages for both the employee and employer portions of the Medicare and Social Security taxes, as well as federal and state withholding. Other plans, such as the 403(b) and 457(b) savings plans and the TRS and ORP retirement plans, only reduce taxable wages, and therefore the calculated tax, for federal and state withholding.