Frequently Asked Questions
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Payroll Taxes
How do I adjust my Federal Income Tax withholding?
Federal income tax withholding is adjusted by submitting a new Employee's Withholding Allowance Certificate (Form
W-4) to Payroll on or before the established Employee
Due Dates.
The amount of allowances you claim on line #5 of your Form W-4 can be changed to increase or decrease the amount of your withholding for Federal Income Tax (FIT). For example:
- When you increase your number of allowances, the amount of
FIT withheld is reduced.
- When you decrease your number of allowances, the amount of
FIT withheld is increased.
Additionally, you may elect to have an extra, fixed dollar
amount withheld for FIT from each pay. By specifying an "Additional
Amount" (see line #6 of Form W-4), be aware that this withholding
is over and above the amount based on your allowances.
Can I claim that I am ‘Exempt’ from
Federal Income Tax withholding?
Yes, providing you meet both of the following conditions
for exemption:
1. Last year you had a right to a refund of all Federal
income tax withheld because you had no tax liability
2. This year you expect a refund of all Federal income
tax withheld because you expect to have no tax liability
Claiming ‘Exempt’ is valid for only one calendar
year at a time. In order to claim ‘Exempt’ for a new calendar year,
you must re-file a new Form W-4 by February 15th in order to maintain the
exempt status. Otherwise, Payroll is required to withhold FIT as if the
employee is filing ‘Single’ with zero allowances.
Some additional restrictions apply. Please read Form
W-4 completely before claiming ‘Exempt’.
If I forgot to change my W-4 form, can I fill
it out now and have it processed retroactively?
No, Federal law prohibits retroactive processing for taxes.
What changes need to be made when I change
my marital status?
If the change in marital status
involves a name change, you should apply for a Social Security card
with your new name and have your department change the name on the
Employee Record and submit it through the proper channels. This must
occur in order for the Payroll Department to make the necessary changes
to the Payroll master file.
If I reached my social security tax maximum with my former employer, can
I exempt myself from social security taxes for the rest of the year with
the University?
No, each employer must deduct FICA according to earnings paid through that particular employer. If you have excess tax withheld during a calendar year,
you must claim the excess on Form 1040, which must be filed on or before
April 15th of the following year.
What is the Social Security (FICA) maximum for
2008?
The 7.65% tax rate is made up of two components:
- Social Security benefits(OASDI) 6.20% tax rate
- Medicare 1.45% tax
Example … Employee’s salary is $160,000,
OASDI portion is capped at $102,000 of wages ($102,000 x 6.2% = $6324).
Medicare portion continues after the $102,000 has been reached since
there is NO CAP.
How does moving affect my Payroll records?
Your permanent home address is used to determine your
liability for certain local taxes. The University is required to collect
local tax from residents of those municipalities in which the University
maintains a facility. If you are a resident of the City of Pittsburgh,
you must have tax withheld for the City wage and school taxes. If you live
outside the City, in a municipality that the University does not withhold for, you need to contact your local tax office for information on making estimated quarterly payments. The City of Pittsburgh levies a non-resident
wage tax on all non-immigrants and out-of-state residents at the rate of 1%.
Your most current home address must be on file in the
Payroll Department to assure receipt of University mailings; e.g., W-2
forms, correspondence, etc. This is extremely important since payroll averages
approximately 800 returned W-2's each year for incorrect addresses.
What are the tax rates in my area?
Click here for a list of tax rates in your area.
Payroll Deductions
What action should I take if I authorize a deduction
and it was not taken from my earnings?
Contact the Payroll Department immediately if a deduction
was not processed. A Payroll staff specialist will investigate the problem
and suggest appropriate action.
If I authorize a deduction, in which month will it take
effect?
Deductions are usually applicable for goods and services
in the current month.
If an employee is paid on a biweekly basis, what deductions
are taken from each paycheck?
First biweekly: Retirement Plan (TIAA/CREF/Vanguard),
Flexible Spending Amount, Medical, Dental, Vision, Group Life Insurance,
Disability Insurance, Union Dues, Vacation Pay, and/or other statutory
deductions.
Second biweekly: Retirement Plan (TIAA/CREF/Vanguard),
Flexible Spending Amount, Medical, Credit Union, Union Dues, Vacation Pay, Parking,
Savings Bonds, United Way, and/or other non-statutory deductions.
Third biweekly: Retirement Plan (TIAA/CREF/Vanguard) and Union Dues (depending upon contractual agreement).
Note: Applicable taxes are withheld from each paycheck.
Is it possible to obtain a salary advance or an early
release of my paycheck?
No, SPI #36, VIII, G. states "Requests for payroll
advance and/or early release of paychecks prior to the normal payday will
not be approved under any circumstances. Should an employee be away during
the normal pay date, arrangements should be made with the department administrator
to forward or deposit the check."
Direct Deposit
When is the money credited to an account when an employee
authorizes direct deposit?
For monthly payrolls, deposits are made no later than
the actual pay date.
For biweekly payroll, deposits are made no later than
the actual pay date.
Is it possible to credit part of a paycheck to a savings
account and part to a checking account?
No, direct deposits must be made entirely to either a
checking account or a savings account.
Miscellaneous
What action should I take if I lose my paycheck?
Notify your supervisor and the Payroll Department immediately.
The Payroll Department will submit a "Stop Payment" to the bank.
Payroll will reissue the check after receiving the confirming stop payment
notice from the bank.
If you recover the lost check after notifying the Payroll
Department but before receiving a new check, do not try to cash or deposit
the check, because the check will be rejected by the bank. Return the check
to the Payroll Department, and a replacement will be issued.
Can an individual employee review his/her own payroll/personnel
record?
Yes, specific policies and procedures are described in
Policy 07-06-05, "Access To Employee Personnel Files." An appointment
must be made with the Office of Human Resources to actually review the
file.
When is payday at the University?
For most of the University staff and faculty, the pay
date is usually the last working day of the month. For certain service
operation departments and temporary employees, the pay date is every other
Friday according to the pre-determined schedule.
What should I do if the Hourly Personnel Certification
Report (HPCR) does not have enough lines to make all my changes?
Complete a Supplemental Hourly Personnel Certification
Report (SHPCR) form with the lines that will not fit on the computer generated
HPCR. Submit the supplemental form with the rest of the time sheets to Payroll, or appropriate human resource area (see the “Deliver To” section
of the Payroll Forms Glossary), on or before the established due date,
which can be found at Business Managers: Due Dates.
What does the heading "Taxable Fringe Benefit" mean
on my payroll check stub?
1) Based upon IRS regulations, the value
of employer-provided group term Life insurance in excess of $50,000
is taxable income to the employee, and the employer is required to withhold
FICA and FIT on this benefit.
2) Moving Expense … Eligibility for reimbursements
of moving expense is available to new full time faculty and librarians
and those full-time administrative and professional staff specifically
approved by a Senior Officer.
What taxes are Imputed Group Life and Moving Expenses
subject to?
Both are subject to FICA (7.65%) and FIT (as applicable).
Supplemental Salaried Personnel
Activity Report (SPAR)
What am I to do if a salaried employee does not
have a Salaried Personnel Activity Report (SPAR) form on
file for the current report period?
Complete a Supplemental Salaried Personnel Activity Report
(Supplemental SPAR) form for the current report period. Submit the
completed
and signed supplemental forms to Financial Records Services by the established due date,
which can be found at Business Managers: Due Dates.
For more information about the proper routing of payroll
related forms, please see the “Deliver To” area of the Payroll
Forms Glossary.
What am I to do if the Salaried Personnel Activity
Report (SPAR) form to be modified does not have enough lines to make
all the changes for the report period?
Complete a Supplemental Salaried Personnel Activity Report
(Supplemental SPAR) form with the lines that will not fit on the computer
generated SPAR form for the current report period. Submit the completed
and signed forms to Financial Records Services by the established due date, which can be found
at Business Managers: Due Dates.
For more information about the proper routing of payroll
related forms, please see the “Deliver To” area of the Payroll
Forms Glossary.
How do I change incorrect demographic information on the
top two lines of a SPAR form?
All employee data reported on these two lines come directly
from the individual's Employee Record. When the changes are made to the
information on the Employee Record, the next SPAR form generated will reflect
the revised data. Do not attempt to make these changes on the SPAR form.
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