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Campus Administrative Training Series / Bloomington Financial and Administrative Resource Page
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Tax Compliance Guidelines
Payroll Taxes - BC*

Activity: Payroll Taxes - BC
Financial Policy: FIN-PAY-IV-90, Payroll Tax Withholding
Related Policies: FIN-PAY-IV-230, Student Social Security Tax Withholding Exemption
FIN-ACC-I-590, Gifts to Employees or Non-Employees
FIN-ACC-I-310, Moving Expenses
FIN-ACC-I-340, University Automobiles and Automobile Allowances
Additional Forms: Federal Form W-4
IN State Form WH-4
Reciprocal State Form WH-47
Request for Duplicate Tax Form (Paper form)
Request for Corrected Tax Form
Request for Prior Year FICA Refund
Things to Know:
  • Payroll tax is the largest tax expense of the University. Income taxes and the employees’ share of FICA (Social Security and Medicare) are withheld from income; the employer’s share of FICA will have been accounted for when budgeting for salaries.
  • However, the provision on non-cash fringes (i.e. discounts, personal use of University vehicles, employees’ gifts, and taxable tuition benefit) not otherwise budgeted will also result in additional FICA expense.
  • Non-cash fringe benefits will be added to employees earnings and will be subject to tax withholding
  • Social Security and Medicare tax exemptions:
    • Students are exempt if they meet the test set out in policy IV-95 listed above.
    • Nonresident aliens on an F-1, J-1, M-1 or Q-1 are exempt if performing services consistent with their visa status.
  • Federal Tax Withholding Calculation
  • Indiana Local (County) Withholding Rates
  • Form W-2 Useful Information
Please contact FMS Tax Department, taxpayer@indiana.edu for more information.
*BC - Budget Construction