Federal and State Taxes
Federal and state regulations require KSU to withhold certain taxes from an employee’s earnings. Tax withholdings can be found on the employee’s pay advice in the taxes section.
The federally mandated Medicare Tax is calculated at 1.45% of an employee’s taxable gross wages and is matched by KSU. The employee’s withholding is coded as Fed Med/EE. In certain situations, student assistants, graduate assistants and federal work study students are not subject to the Medicare Tax. As well as, certain non-resident aliens are not subject to the Medicare Tax either, it will depend on their Visa status and their country of citizenship.
Some employees may also be required to pay an additional 0.9% Medicare Tax. This additional tax is dependent upon the employee’s annual earnings and the IRS threshold amount. Please refer to the following IRS resources for more information.
Social Security Tax
The federally mandated Social Security Tax (OASDI - Old-Age, Survivors, and Disability Insurance) is calculated at 6.2% of an employee’s taxable gross wages and is also matched by KSU. The employee’s withholding is coded as Fed OASDI/EE.
The Maximum Taxable Wage Base and Employee Withholding for the Social Security Tax is listed below:
YearAnnual Maximum Taxable Wage BaseAnnual Maximum Employee Withholding
Certain non-benefited employees are not subject to the Social Security Tax but are instead required to participate in the Georgia Defined Contribution Plan (GDCP). Typically, student assistants, graduate assistants, and federal work study students are not subject to the Social Security Tax or required to participate in the Georgia Defined Contribution Plan. Additionally, certain non-resident aliens are not subject to the Social Security Tax either, it will depend on their Visa status and their country of citizenship.
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 Form W-4 tax withholding elections. Employees may update their federal Form W-4 tax withholding election at any time by using the employee self-service application KSU Employee Self-Service. Certain special payments, but not limited to, vacation payouts, severance and relocation reimbursements are taxed at the federally mandated supplemental rate of 22%.
Effective 01/01/2020, new employees or current employees wishing to change their current W-4 election must complete a new W-4. There are IRS tax links below for guidance on completing the 2020 Form W-4, as it is different from previous years.
Electing the withholding exemption is still an option for some employees, refer to the IRS guidance links below for the specific conditions in which you may qualify. Should you determine that you would like to claim exemption from withholding, you will need to complete a new W-4.
Paper Form Submission
Write “Exempt” on the Form W-4 in the space below Step 4(c). Then, complete Steps 1(a), 1(b), and 5. Do not complete any other steps, other than signing and dating your form.
If you are claiming “exempt”, you are required to submit a new W-4 each year by February 16th.
IRS Guidance Links
State income taxes are withheld from an employee’s paycheck in accordance with Georgia Department of Revenue tax schedules as specified by the tax withholding status, exemptions, and allowances indicated on the G-4 form.
If an employee does not perform their employment duties in the state of Georgia, they will be taxed in accordance with the state withholding mandate associated with the state in which the job duties are being performed.
Employees may update their state withholding status at any time using employee self-service or by completing a new paper Form G-4, or other applicable State form. The completed paper form should be submitted to Kennesaw State University Human Resources - 3391 Town Point Drive NW, MD#9120 Kennesaw, GA 30144.
Reducing Taxable Wages and Tax LiabilitySeveral benefit premiums and/or plan contributions are designated as pre-tax deductions. Benefit premiums such as the medical, dental, vision, and flexible spending accounts reduce both the employee and employer taxable wages for Medicare and Social Security, as well as, reduce federal and state taxable wages. Other plans, such as the 403(b)and 457(b) tax-deferred retirement savings plans and the TRS and ORP retirement plans do not reduce the Medicare and Social Security taxable wages.