Paycheck Taxes


The following types of taxes below are the most commonly seen taxes applied to paychecks at Indiana University. For specific questions about your paycheck, please contact University Tax Services with your Employee ID number and a description of your question.

Federal Taxes

Indiana University uses an annualized method to calculate Federal taxes on each paycheck based on the Federal Form W-4 received. For most employees, this method shows little to no difference than the other methods as prescribed by the IRS for tax withholding. Please see the Federal Income Tax Withholding Calculation handout which details this calculation and examples below:

For assistance in completing the Federal Form W-4, please see the IRS Withholding Calculator at the link below:

Individuals with contract pay however, can end up with little to no taxes withheld based on the annualized method. Those employees on contract pay should consider additional withholding on the Form W-4. Please see the Contract Pay handout for examples below:

Social Security & Medicare Taxes

Social Security and Medicare (FICA) tax is required to be withheld for all employees who do not meet the student or non-resident alien exemption for FICA taxes. To be exempt as a student, the individual must enrolled in a certain number of credits. Please see table below for the number of credit hours needed to meet the exemption:

Student

Fall Semester

Credit hours

Spring Semester

Credit hours

Summer Session

Credit hours

Undergraduate

6

6

3

Graduate

4

4

2

The current Social Security and Medicare rates and wage limits are listed in the table below, or see the Social Security Administration link below:

Fica Tax Type Paycheck Description Tax Rate
Medicare Fed MED/EE 1.45%
Social Security Fed OASDI/EE 6.2%
Add'l Medicare Fed AddlMed .9%

Please note there is no wage limit for Medicare taxes and all non-exempt wages will have Medicare taxes applied. Additionally, enacted in 2013, there will be an additional 0.9% Medicare tax withheld from wages paid to an employee in excess of $200,000. For more information, please see the IRS webpage on Additional Medicare tax:

For specific questions, please contact University Tax Services.

State & Local Taxes

State and local taxes can vary by state. The following table identifies the link where the State and Local taxes can be calculated. For more information, please contact the individual state department of revenue in question.

See Living and Working Outside of Indiana.

State

State Tax

Local Tax

Alabama

Alabama   State Tax - See Pg. 7

No Local tax

Arizona

Arizona State   Tax

No Local tax

Arkansas

Arkansas   State Tax - See Pg. 11

No Local tax

California

California   State Tax - See Page 40

No Local tax

Colorado

Colorado State Tax - See Pgs. 22-23

No Local tax

Connecticut

Connecticut   State Tax

No Local tax

Delaware

Delaware   State Tax

No Local tax

Georgia

Georgia   State Tax - See Pg. 40

No Local Tax

Hawaii

Hawaii   State Tax - See Appendix 2

No Local Tax

Idaho

Idaho   State Tax - See Page 19

No Local Tax

Illinois

Illinois State   Tax - See Pg. 4

No Local tax

Indiana

Update your Indiana Tax Withholding
Indiana State   Tax

Indiana Local   Tax

Iowa

Iowa   State Tax

See Guide

Kansas

Kansas   State Tax - See Page 22

No Local Tax

Kentucky

Reciprocal Agreement in Force KY   State Tax Formula

KY Local Tax

Louisiana

Louisiana State   Tax Tables and Formula

No Local Tax

Maine

Maine   Withholding Tax

No Local Tax

Maryland

Maryland   State Taxes

MD Local Taxes

Massachusetts

Massachusetts   State Tax - See Pg. 12

No Local tax

Michigan

Michigan   State Tax - See current year "Income Tax Withholding Guide"

No local tax

Minnesota

Minnesota   State Tax - See Page 34

No Local Tax

Mississippi

Mississippi   State Tax

No Local tax

Missouri

Missouri   State Tax - See Pgs. 14-15

No Local tax

Montana

Montana State   Tax - See Pg. 9

No Local tax

Nebraska

Nebraska   State Tax

No Local Tax

New Jersey

NJ State   Tax

Limited Local

New Mexico

New   Mexico State Tax - See Current Year PDF and "Percentage   Withholding"

No Local tax

New York

New York State   Tax

New York Local   Tax

North Carolina

N. Carolina   State Tax - See Pgs. 16-17

No Local tax

North Dakota

New Mexico   State Taxes - see Current Year - Rates and Instructions - Percentage of Wages   Method

No Local tax

Ohio

Ohio State Tax

Ohio Local Tax

Oklahoma

Oklahoma   State Tax - See Pg. 21

No Local tax

Oregon

Oregon   State Tax - See Pg. 4

No Local tax

Pennsylvania

Pennsylvania   Tax Rates

PA Local EIT

Rhode Island

Rhode   Island State Tax - See Page 6

No Local Tax

South Carolina

South Carolina   State Tax

No Local tax

Utah

Utah   State Tax - Pg. 11, Schedule 7

No Local tax

Vermont

Vermont   State Tax - See Page 3

No Local Tax

Virginia

Virginia State   Tax

No Local tax

Washington D.C.

Washington   D.C. State Tax - See current year

No Local tax

West Virginia

West Virginia   State Tax - See Page 16

WV Local Tax

Wisconsin

Wisconsin   State Tax - Pg. 45, Method B

No Local tax