U.S. Tax Information
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.
What is the Additional Medicare Tax?
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%.
Electing the withholding exemption is still an option for some employees. Should you determine that you would like to claim exemption from withholding, you are required to electronically submit a new W-4 each year by Febrary 15th.
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. Please notify firstname.lastname@example.org if you are performing work from a state other than Georgia.
Employees may update their state withholding status at any time using employee self-service.
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.
Your electronic 2022 W-2 is now available and can be accessed through OneUSG Connect Employee Self-Service. In order to retrieve your W-2 you will need to follow the steps below:
- Log into OneUSG Connect - OneUSG Connect .
- Click the Payroll tile.
- Click the Taxes tile.
- Land on the View W-2/W-2c Forms page.
- For the Tax Year 2022, click Year End Form.
Please note: You may notice a difference in the format between the mailed version and the electronic version posted in OneUSG Connect. The information presented is the same in both, and either version can be used for tax purposes. The only exceptions are:
- W-2s available in OneUSG Connect do not include the Control Number (Box D). This number
may be used for the quick population of the employee’s W-2 data in certain e-filing
systems; however, the omission of this field on the electronic version should not
affect the ability to file taxes.
- The mailed version of the employee W-2 now contains a truncated Social Security Number format. Social Security numbers on employee mailed versions will be masked using the format XXX-XX-1234 (note: all information reported directly to federal and state agencies still contains the full social security number as usual).
If you have questions or concerns, please contact email@example.com.
Understanding Your W-2
Box 1 - Wages, tips, and other compensationReports your total taxable wages for federal income tax purposes. This figure represents your income (wages, salary, bonuses, and other taxable compensation) minus tax-deferred retirement plans and certain pre-tax deductions such as medical, dental, vision, and flexible spending plans. Any taxable fringe benefits (such as group term life insurance) are also included in your Box 1 wages.
Box 2 - Federal income tax withheldReports the total amount withheld from your paychecks for federal income taxes. This represents the amount of federal taxes you have paid-in throughout the year.
Box 3 - Social Security wagesReports the total amount of wages subject to the Social Security tax. For 2022, the Social Security tax is assessed on wages of $147,000 or less. This limit is called the Social Security wage base.
Box 4 - Social Security tax withheldReports the total amount of Social Security tax withheld from your paychecks. The Social Security tax is a flat tax rate of 6.2% on your taxable wages, up to a maximum wage base of $147,000 for 2022. Wages above $147,000 for 2022 were not subject to the Social Security tax. Accordingly, the maximum figure shown in Box 4 on your 2022 W-2 should be $9,114.00 ($147,000 maximum wage base times 6.2%).
Box 5 - Medicare wages and tipsReports the amount of wages subject to Medicare tax. There is no maximum wage base for Medicare tax. The amount shown in Box 5 may be larger than the amount shown in Box 1. Medicare wages include any deferred compensation, 403(b) and 457(b) contributions, or other fringe benefits that are normally excluded from the regular income tax.
Box 6 - Medicare tax withheldReports the amount of taxes withheld from your paycheck for the Medicare tax. The Medicare tax is a flat tax rate of 1.45% of your total Medicare wages. Wages that are paid in excess of the applicable threshold for an individual’s filing status is subject to the Additional Medicare tax of .9 percent, of the excess.
Box 7 - Social Security tipsReports tip income you reported.
Box 8 - Allocated tipsReports tip income allocated to you. This amount isn’t included in W-2 Boxes 1, 3, 5, or 7.
Box 10 - Dependent Care BenefitsReports any amounts reimbursed for dependent care expenses, or the dollar value of dependent care services provided. Any amount over $5,000 is reported as taxable wages in Boxes 1.
Box 11Reports any amounts distributed to you from your employer's non-qualified deferred compensation plan or non-government Section 457 pension plan.
Box 12 - Deferred Compensation and Other Compensation
There are several types of compensation and benefits that can be reported in Box 12. Below are the Codes and code explanations that you may see listed in Box 12
A - Uncollected Social Security or RRTA tax on tips. Include this tax on Form 1040.
B - Uncollected Medicare tax on tips. Include this tax on Form 1040.
C - Taxable cost of group-term life insurance over $50,000 (included in boxes 1,3 (up to Social Security wages base), and box 5.
D - Elective deferrals to a section 401(k) cash or deferred arrangement. Also includes deferrals under a SIMPLE retirement account that’s part of a section 401(k) arrangement.
E - Elective deferrals under a section 403(b) salary reduction agreement.
F - Elective deferrals under a section 408(k)(6) salary reduction SEP.
G - Elective deferrals and employer contributions (including non-elective deferrals) to a section 457(b) deferred compensation plan.
H - Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan.
J - Nontaxable sick pay (information only, not included in Boxes 1, 3, or 5).
K - 20% excise tax on excess golden parachute payments.
L - Substantiated employee business expense reimbursements (nontaxable).
M - Uncollected Social Security or RRTA tax on taxable cost of group-term life insurance over $50,000 (former employees only).
N - Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (former employees only).
P - Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces (not included in Boxes 1, 3, or 5).
Q - Nontaxable combat pay. See the instructions for Form 1040 or Form 1040A for details on reporting this amount.
R - Employer contributions to your Archer medical savings accounts (MSA). Report on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts.
S - Employee salary reduction contributions under a section 408(p) SIMPLE plan (not included in Box 1).
T - Adoption benefits (not included in Box 1). Complete Form 8839, Qualified Adoption Expenses, to compute any taxable and nontaxable amounts.
V - Income from exercise of non-statutory stock option(s) (included in Boxes 1, 3 (up to Social Security wage base), and 5). See Publication 525, Taxable and Nontaxable Income, for reporting requirements.
W - Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria plan) to your health savings account (HSA). Report on Form 8889, Health Savings Accounts (HSAs).
Y - Deferrals under a section 409A nonqualified deferred compensation plan.
Z - Income under a nonqualified deferred compensation plan that fails to satisfy section 409A. This amount is also included in Box 1 and is subject to an additional 20% tax plus interest. See the Form 1040 instructions.
AA - Designated Roth contributions under a section 401(k) plan.
BB - Designated Roth contributions under a section 403(b) plan.
DD - Cost of employer-sponsored health coverage. The amount reported with Code DD isn’t taxable.
EE - Designated Roth contributions under a governmental Section 457(b) plan. This amount doesn’t apply to contributions under a tax-exempt organization Section 457(b) plan.
FF - Permitted benefits under a qualified small employer health reimbursement arrangement.
GG - Income from qualified equity grants under section 83(i).
HH - Aggregate deferrals under section 83(i) elections as of the close of the calendar year.
- Retirement Plan
- Statutory Employee
- Third Party Sick Pay
Box 14 – Other information
The information below may be reported.
- State disability insurance taxes withheld
- Union dues
- Uniform payments
- Health insurance premiums deducted
- Nontaxable income
- Educational assistance payments
- A member of the clergy’s parsonage allowance and utilities
- Charitable contributions made through payroll deduction
- Qualified sick leave wages/qualified family leave wages paid under the Families First Coronavirus Response Act. If you have self-employment income in addition to wages paid by us, and intend to claim any qualified sick leave or qualified family leave equivalent credits, when you file your taxes, you may have report the qualified sick leave or qualified family leave wages on Form 7202 - Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals.
Box 15 - State and State Employer's IdentificationReports your employer's state and state tax identification number. If you worked for the same employer in multiple states, there may be multiple lines of information.
Box 16 - State wagesReports the total amount of taxable wages earned in that state. If you worked for the same employer in multiple state, there may be multiple lines of information.
Box 17 - State income tax withheldReports the total amount of state income taxes withheld from your paychecks for the wages reported in Box 16.
Box 18 - Local wagesReports the total amount of wages subject to local, city, or other state income taxes.
Box 19 - Local income tax withheldReports the total amount of taxes withheld from your paychecks for local, city, or other state income taxes.
Box 20 - Locality nameProvides a brief description of the local, city, or other state tax being paid. The description may identify a particular city or may identify a state tax such as State Disability Insurance (SDI) payments.
W-2 Electronic Consent
Now is a good time to elect to receive your W‐2 statements online through OneUSG Connect.
Federal regulations require that employees give their consent to receive the W-2 in an electronic format. Employees must consent to electronic delivery by Dec. 31, 2023.
It’s easy! Follow these steps to consent to or confirm your current status:
- Log into OneUSG Connect at OneUSGConnect.usg.edu
- Click the Payroll tile from Employee Self Service.
- Click the Taxes tile.
- Click W-2/W-2c Consent.
- If you have already consented in OneUSG Connect to receive W-2 or W-2c forms, your status will indicate “Consent received,” and no further action is required.
- If your current status is “No consent received,” proceed to step four.
- Click the box for “Check here to indicate your consent to receive electronic W-2 and W-2c forms.”
- Click Submit.
Once your consent is given in OneUSG Connect, it carries forward each year and does not need to be repeated.
Why should you consent to electronic W-2?
- Online delivery provides access to your W‐2 statement earlier than the traditional paper process.
- Online delivery minimizes the chance that your W‐2 statement will get lost, misdirected or delayed during delivery or misplaced after received.
- Your sensitive information is safer. Electronic delivery helps ensure that your W-2 is delivered directly to you and not opened/seen by the wrong person.
- You can retrieve your W‐2 statements at any time of day and on weekends.
- You can print multiple copies at your convenience.
- W‐2 statements will remain online for multiple years.
- Go Green!
If you do not consent, a paper W-2 will be mailed to your current address on record.
If you have questions or concerns, please email firstname.lastname@example.org .