7/30/2023 0 Comments Federal withholding tax tableThe UW does not withhold federal tax for stipends, scholarships, or fellowships.For additional information on scholarship and fellowship payments, refer to IRS Publication 970 Tax Benefits for Education (PDF).At year end, information on such payments are summarized in a letter from the ISC. Scholarship and fellowship payments may be paid to individuals who are not students at the University of Washington.Such payments are reported at year end on IRS Form 1098-T. Scholarship and fellowship payments are not considered wages, and are not reported on Form W-2.Employee benefits such as health care and retirement are pre-tax reductions and are not included as part of your taxable income.Taxable Fringe Benefits (e.g., gift cards, moving expenses, sports tickets, non-job related graduate student tuition over the IRS Section 127 exemption limit, as well as some other payments) have a Federal Withholding Tax rate of 22%.Supplemental Wage payments (e.g., Awards, Employee Separation Authorization Payments – vacation time paid at separation from the UW – as well as some other payments) have a Federal Withholding Tax rate of 22%. The following types of payment, since they are separate from your salary, are exceptions to the withholding tax guidelines: Refer to the WA State Department of Labor & Industries website for information. Open/Expand a menu below for information guidance about calculating your withholding for any of these other deductions can be found on the Calculating Your Withholding page. Most payments to employees have Federal Withholding Tax deducted based on the IRS Semi-Monthly Tax Withholding Table, your W-4, and any pre-tax deductions you have elected. Calculating Federal FICA and Other Mandatory State Taxes If you are receiving a pension or supplemental pension from the UW, you will additionally need to download, print, and complete IRS Form W-4P, and mail the completed paper form to the ISC. The University of Washington will not refund federal withholding taxes due to either late or incomplete IRS Form W-4 information.If your W-4 information is not renewed or updated on time, by IRS law your tax status automatically defaults to the Single tax tables and zero allowances. If you are eligible to claim Exempt, your W-4 must be renewed each year by February. Exempt status on the IRS Form W-4 is valid for one year.*Foreign National employees have special rules for filling out IRS Form W-4. Make changes to your IRS Form W-4 at any time per the instructions in the Update Federal Withholding Elections User Guide. Update your current withholding elections
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