The IRS requires withholding on most payments, but your department may have promised an individual a specific payment regardless of taxes. In this case, your department must request Payroll to "gross-up" the payment. Please note that your department will incur the charges for the full amount submitted to Payroll.
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EMPLOYEE/STUDENT AWARDS
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EMPLOYEES SUBJECT TO MEDICARE*
Employee awards are taxed at 28.4% if the employee is subject to Medicare tax.
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Award to an employee (subject to Medicare tax)
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EMPLOYEES NOT SUBJECT TO MEDICARE*
Employee awards are taxed at 26.95% if the employee is not subject to Medicare tax.
Student Awards: If the employee is a student, the award tax rate will only be used if the award is related to the student's employment. Student awards not related to employment should be processed through Accounts Payable.
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Award to an employee (NOT subject to Medicare tax)
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PAYMENTS TO FOREIGN NATIONALS
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Scholarship and fellowships to Foreign Nationals holding F, J, or M visas are taxed at 14%. If the Foreign National holds a different type of visa, the scholarship or fellowship will be taxed as "All other Foreign National Payments" at 30%. Scholarships and fellowships to U.S. citizens are not taxed by the University.
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Foreign National scholarship or fellowship to F, J, or M visa holder
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All other Foreign National Payments
(including student awards for foreign nationals)
are taxed at 30%.
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Other Foreign National payment
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OTHER EMPLOYEE PAYMENTS
CAN BE USED FOR CELL PHONE/DATA/INTERNET STIPEND
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Federal, State and Medicare*
Taxed at 28.4% if the employee is subject to Medicare tax.
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Federal and State
Taxed at 26.95% if the employee is not subject to Medicare tax.
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Federal, State, SURS and Medicare*
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Federal, State, Social Security and Medicare*
Taxed at 34.6% if the employee is subject to Medicare tax.
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Click "Calculate"
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Your department will be charged:
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Result: $ |
*if you are unsure if the employee is subject to Medicare, contact OBFS University Payroll for clarification. Please note an additional 0.9% Medicare tax will apply for all wages in excess of $200,000 in a calender year.
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