Because of the Holiday Calendar, the Cashier's Office will be closing at 4:30 p.m. Friday, December 20, 2013, through 9:00 a.m. Thursday, January 2, 2014.
Employees who receive a "hard copy" payroll check should make arrangements to pick up their checks by the close of business Friday, December 20, 2013, at the office located in the Student Accounts Building. As usual, a photo ID and signature is required for pickup.
Now is a great opportunity to consider saving time by enrolling in the direct deposit program. More than 92 percent of Illinois State employees have already enrolled because it's the fastest, safest, and most convenient way to receive your paycheck. It is easy to sign up; simply log in to iPeople and select Self Service-Payroll & Compensation-Direct Deposit.
The Payroll Office is pleased to announce the rate increase and the associated retro-payments have been processed on the November 27, 2013 payment date for Local 3236 – Healthcare and Local 1110.
Pay advices are available for employees to review within iPeople. The navigation is 'Self-Service > Payroll and Compensation > View Pay Check'. If adjustments are required on retro-payments, the adjustments will be made on the next scheduled pay period for the employee.
Each year, a significant number of Form W-2s are returned to the Payroll Office due to incorrect addresses. The University Payroll Office encourages all employees to maintain accurate iPeople addresses throughout the year. However, as the 2013 calendar year concludes, it is especially important to update your information for tax purposes.
To easily confirm a mailing address, simply review it in upper-left corner of the pay advice located by logging into iPeople and selecting Self Service-Payroll & Compensation-View Paycheck. Employees may make address changes by following the instructions posted online. Changes should occur no later than January 5, 2014, to be included in the 2013 Form W-2 processing.
Although W-2s will be available online, a paper form will also be mailed by January 31, 2014. For certain foreign employees, the 2013 1042-S Forms (Foreign Person's U.S. Source Income Subject to Withholding) will be mailed by March 15, 2014, as required under Internal Revenue Service regulations. The Payroll Office home page will be updated with a notice when the forms are mailed.
It is time for employees to review their current Form W-4 (Employee's Withholding Allowance Certificate) status for preferred changes in filing status and/or number of allowances needed for tax year 2014. Current tax withholding elections may be easily viewed in the upper-right corner of the pay advice found in iPeople and selecting Self Service-Payroll & Compensation-View Paycheck.
All employees who claimed total exemption from income tax withholding in 2013 must submit a new 2014 Form W-4 by February 15, 2014, to continue to claim exemption from withholding in the new year. After that date, Illinois State University must begin withholding income tax as if the 2014 Form W-4 is not submitted.
International nonresident employees must not fill out a new W-4 or make changes to an existing W-4 without guidance from a tax specialist in the Comptroller's Accounting office. If applicable, treaty benefits need to be renewed each calendar year. For information on contacting or scheduling an appointment with a campus tax specialist, call (309) 438-3106 or e-mail email@example.com.
The following resources may be helpful to employees making withholding decisions:
The Internal Revenue Service regulations consider anything of value provided by an employer to be a form of compensation. The tuition waiver you received falls under these regulations. As such, the Internal Revenue Code requires that educational assistance in excess of $5,250 be added to employee's taxable wages.
Educational assistance, including tuition waiver(s), in excess of the excludable amount ($5,250) is subject to Federal, State, Social Security, and Medicare taxes, if applicable. Any tuition waiver included as taxable income will be included on upcoming pay periods. Both the amount of taxable income associated with the waiver and the taxes that are withheld with respect to such income are reported on Form W-2. The Form W-2 will be issued prior to January 31, 2014.
If you have any questions, please contact the Payroll Office at (309) 438-7677.
Starting in 2013, the Affordable Care Act raised the employee portion for the Medicare tax rate for wages that exceed $200,000 in a calendar year. Last calendar year, employees contributed Medicare taxes at a rate of 1.45% on all wages, and the employer matched that amount. The new Medicare tax rate for employees was raised to 2.35% for the amount that exceeds $200,000. The employee portion that does not exceed $200,000 will remain at 1.45%. The employer portion remains at 1.45% on all wages.
Effective July 1, 2013, Illinois State University introduced the 403(b) ROTH as an additional investment option for employees.
Reimbursement rates for employer costs are provided by the State University Retirement System (SURS) and Central Management Services (CMS). These rates are applicable to based upon plans selected, dependent coverage, and wages earned.