|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. free athletic tickets, 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 all applicable tax withholding
- Social Security and Medicare tax exemptions:
- Students are exempt if they meet the test set out in policy IV-230 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
- Contract Pay Calculation
- Indiana Local (County) Withholding Rates
- Form W-2 Useful Information
Please consult FMS - Paycheck Taxes for more useful tax information.
You may contact University Tax Services, firstname.lastname@example.org more information.