This is your total taxable wages for federal income tax purposes. This figure includes your regular wages, bonuses, and any taxable fringe benefits (such as education benefits greater than $5,250), rewards and recognition, gifts, taxable moving expenses, as well as the taxable value of group-term life insurance in excess of $50,000 (see box 12, below). Box 2: Federal income tax withheld. This amount represents the total amount withheld from your paycheck for federal income taxes.
This represents income subject to Social Security tax. There is a Social Security wage base each year and once you earn up to that amount, you no longer will have deductions for Social Security tax. Social Security wages are reduced by pre-tax deductions such as health/dental/vision insurances, and flex spending but not reduced by your contributions to a retirement plan (403b or 457.) The only applicable exceptions are students working at UVA while enrolled at least half time and attending classes, as well as nonresident alien employees visiting the U.S. for a limited period on F-1, J-1, M-1 or Q-1 visas and performing services to carry out the purpose for which such visas have been issued.
This amount represents the total amount withheld from your paycheck for Social Security taxes. The Social Security tax rate is 6.2%, and a matching amount of 6.2% is paid by UVA. The only applicable exceptions are students working at UVA while enrolled at least half time and attending classes, as well as nonresident alien employees visiting the U.S. for a limited period on F-1, J-1, M-1 or Q-1 visas and performing services to carry out the purpose for which such visas have been issued.
This represents income subject to Medicare tax. There is no maximum wage base for Medicare taxes. Medicare wages are reduced by pre-tax deductions such as health/dental/vision insurances, and flex spending but not reduced by your contributions to a retirement plan (403b or 457.) The only applicable exceptions are students working at UVA while enrolled at least half time and attending classes, as well as nonresident alien employees visiting the U.S. for a limited period on F-1, J-1, M-1 or Q-1 visas and performing services to carry out the purpose for which such visas have been issued.
This amount represents the total amount withheld from your paycheck for Medicare taxes. The Medicare tax rate is 1.45%, and a matching amount of 1.45% is paid by UVA. Once you earn $200,000 annually, there is an additional .9% that the employee pays which makes a total of 2.35%. The only applicable exceptions are students working at UVA while enrolled at least half time and attending classes, as well as nonresident alien employees visiting the U.S. for a limited period on F-1, J-1, M-1 or Q-1 visas and performing services to carry out the purpose for which such visas have been issued.
This is not applicable to UVA employees.
This amount represents any amount reimbursed for dependent care expenses through a flexible spending account. UVA must report the pre-tax amount paid into a dependent care flexible spending account as part of the university’s Benefits Plan. Only dependent care benefits are reportable in this box.
This amount reports any amounts that were distributed to you from your non-qualified deferred compensation
The “Retirement plan” block will be checked if you contributed to any of UVA’s tax-deferred options, or if you were a participant in UVA’s Optional Retirement Plan or the Commonwealth’s defined benefit plan through the Virginia Retirement System (VRS). By checking the “Retirement plan” block, an employer notifies the IRS that an employee’s eligibility for a deductible Individual Retirement Arrangement (IRA) is limited.
This box may be used by an employer to report any additional tax information (e.g. taxable auto allowance.)
This box simply reports the UVA's state and state identification number for taxation purposes.
This amount represents the total of taxable wages earned in that state.
This amount represents the total of state income taxes withheld from your paycheck for the wages reported in Box 16.
These boxes apply to out-of-state employees only, whose tax residency states collect local income taxes.
During the year, changes in an employee’s marital status, exemptions, adjustments, deductions or credits may occur which will impact what they claim on their tax return. When these changes occur, employees should change their withholding status and the number of allowances in Employee Self-Service/Tax forms appropriately. If the changes reduce the number of allowances an employee is allowed to claim or if their marital status changes from married to single, employees must update their Form W-4 within 10 days of this change. Generally, employees can make changes to their W-4 whenever they wish to change their withholding allowances for any other reason.
For additional assistance as to whether you can claim exemption from withholding, you can refer to IRS Publication 505 Tax Withholding and Estimated Tax. This guide will walk you through a series of “yes” and “no” questions to help you decide whether you can claim an exemption from withholding.
When Will New W-4 Form Allowances Go into Effect?
Any change to the W-4 form entered through Workday will take effect on the next available paycheck.
Employees can claim exemption from withholding only if both of the following situations apply:
They had a right to a refund of all federal income tax withheld in the previous tax year because they had no tax liability They expect a refund of all federal income tax withheld for the current tax year because they expect to have no tax liabilityWho is Exempt from Withholding?
If an employee claims exemption from withholding, employers will not withhold Federal income tax from their wages. The exemption applies only to income tax and not to Social Security or Medicare 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.
You can claim exemption from income tax withholding if you meet IRS or State guidelines. By claiming exemption, 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 every calendar year and must be renewed by February 15 to maintain the 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.
The Finance-Payroll Department cannot give tax advice. If you need tax assistance, contact the IRS or seek your own tax or legal counsel.
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.
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, with no exceptions.
Additional Information can also be found on the Student FICA webpage.
The Solution Center teams in UVAFinance and UVAHR are ready to support you with general questions.
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Direct the following inquiries to AskFinance:
Email: AskFinance@virginia.edu Phone: 434-924-3400 |
Direct the following inquiries to AskHR:
Email: AskHR@virginia.edu Phone: 434-243-3344 |
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