Federal

Federal income taxes are generally based on your Form W-4 an individual’s filing status, income, dependents, and other adjustments. Income taxes are withheld from pay using the IRS percentage method of withholding.

• Taxable Gross Explanation
• Federal Income Tax Calculation
• Non-Resident Alien Tax Calculation
• Federal Income Tax Table

Supplemental Tax Withholding

Although income taxes on wages are generally withheld using the IRS percentage method table, the supplemental rate may be utilized in certain circumstances, i.e. supplemental wages. Currently, the IRS supplemental rate is 22 percent. Taxes on supplemental wages may be calculated at either the percentage method or flat rate method, depending upon how the supplemental wages are paid—combined with regular wages, or paid out separately.

IRS defines supplemental wages as compensation paid in addition to the employee's regular wages that includes, but is not limited to, severance or dismissal pay, vacation pay, back pay, bonuses, moving expenses, overtime, and taxable fringe benefits. That rate is subject to change annually with the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001.

The University will apply the supplemental rate of withholding, when applicable, upon the election of the employee. To elect the use of the supplemental rate, an employee must contact the Payroll Office.

Earned Income Credit

Earned Income Credit (EIC) is a refundable IRS tax credit for certain workers. To determine if you're eligible to receive a federal tax refund due to EIC, read IRS Notice 797.