Understand University Payroll Taxes

New employees must indicate both state and federal tax exemptions in Workday. If you make no selection, UVA must withhold taxes at the default rate of single with zero exemptions.

All employees may change their current tax withholding rate at any time. Elections remain in effect until a change is made.

You can change your elections in Workday.  Use the "Show Me How" feature if you need assistance.

Review Exemptions

You can claim exempt from income tax withholding if you meet IRS or State guidelines. By claiming exempt, no federal and/or state taxes will be withheld.

Find information on claiming exemption from withholding on the requisite tax forms.

Renewal

  • Exempt status expires at the end of the every calendar year and must be renewed by February 15 to maintain exemption for the next calendar year
  • If you do not renew your exempt status by February 15, UVA must begin withholding income taxes during the next pay period at the default maximum withholding amount, single with zero exemptions
  • No refunds will be given by the Finance-Payroll Department

Full-Time Students

  • Information regarding the exemption from Social Security and Medicare (FICA) taxes for students can be found in the Student FICA exemption policy.

  • Student workers with active faculty or staff assignments are not eligible for FICA exemption on any assignment, no exceptions.

  • Additional Information can also be found on the Student FICA webpage

Review Overwithheld Income Taxes

UVA is required to withhold income taxes from an employee’s paycheck according to the employee’s withholding selections. It is your responsibility to complete these tax forms in Workday and to do so correctly.

If you fail to complete the forms and income taxes are overwithheld as a result, the Finance-Payroll Department will not refund any of the taxes withheld.

If eligible, you can be refunded for any overwithheld income taxes when filing a personal income tax return for that year.

Utilize Resources

The Finance-Payroll Department cannot give tax advice. If you need tax assistance, contact the IRS or seek your own tax or legal counsel.

Did you know
Exempt status expires at the end of the every calendar year and must be renewed by February 15 to maintain exemption for the next calendar year