Each employee must complete a Form W-4 when beginning work at ISU. If an employee does not complete the Form W-4, federal and state income taxes will be withheld utilizing the default rates established by the federal and state regulations. The federal default rate is the status of single and zero withholding allowances. The State of Illinois default rate is withholding with no allowances.
ISU will not refund any taxes that were withheld due to an employee's neglect to complete a Form W-4. To make changes to your Federal Form W-4 allowances employees may utilize Employee Self-Service in iPeople or submit a completed Federal Form W-4 to the Payroll Office. For changes to the State Form IL-W-4, please submit a completed State Form IL-W-4 to the Payroll Office.
A W-4 remains in effect until an employee submits a new one; except in the case where an employee claimed to be exempt or employment relationship has terminated. An exempt employee must complete a new W-4 each calendar year.
The W-4 for an employee who has indicated that he/she is exempt from withholding expires on February 15th of each calendar year. The ISU Payroll Office will send notification in late January of each calendar year to employees who have completed their Form W-4's indicating that they are exempt from withholding. If the employee qualifies and wishes to continue being exempt from federal income tax withholding, the employee must complete a new Form W-4 and submit it the Payroll Office by the deadline indicated in the notification. To determine if you are eligible to claim exempt on your W-4, see the Exemption from Withholding section of IRS Publication 515 .
If an employee is to receive an award payment or additional pay (i.e. overload pay, summer research, summer teaching) it is the responsibility of the employee to change his/her Form W-4 withholding status in order to prevent over taxation due to the additional income.
To determine the correct number of allowances you should claim on your Federal Form W-4, complete the Personal Allowances Worksheet provided by the IRS.
The Internal Revenue Service (IRS) provides an IRS Personal Withholding Calculator to assist individuals in determining the number of personal allowances to be claimed.
Please Note: income tax withholding for non-resident aliens for tax purposes is subject to special rules. Individuals should consult with the University Non-Resident Tax Specialist prior to submitting Income tax withholding forms.
To determine the correct number of allowances you should claim on your state Form IL-W-4, complete the worksheet on the back of the form to figure the correct number of allowances you are entitled to claim.
If you claimed exemption from withholding on Federal Form W-4, you still may be required to have Illinois income tax withheld.