Understanding Payroll Taxes

Other

• Form W-4 - Employee's Withholding Allowance Certificate
• Arizona Form A-4 or Out-of-State Domestic Forms - Employee's State Withholding Selections
• Arizona WEC - Withholding Exemption Certificate (Arizona Form WEC)
• Arizona WECI - Withholding Exemption Certificate Native American (Arizona Form WECI)
• FICA - The Federal Insurance Contributions Act (FICA)

Form W-4 - Employee's Withholding Allowance Certificate

Complete Form W-4 to figure the correct amount of federal income tax to have withheld from your paycheck. You may want to refigure your withholding each year if your tax situation changes. Note that Form W-4 has been revised effective tax year 2020. Review the Changes to Form W-4 for 2020. 

Form Deadline: Friday, 5:00 pm, non-pay week

Form available on UAccess Employee

Arizona Form A-4 or Out-of-State Domestic (U.S.) Forms - Employee's State Withholding Selections

Arizona Revised Statutes (ARS) §43-401 requires your employer to withhold Arizona Income Tax from your compensation paid for services performed in Arizona for application toward your Arizona income tax liability.

If you work in a state other than Arizona, you may have a tax liability to the state in which you work. See Out-of-State Domestic Taxation for more information.

Form Deadline: Friday, 5:00 pm, non-pay week

Forms available on UAccess Employee

• New Employees should complete within the first five days of employment. If you do not submit a form, your withholding rate will automatically be set to a default rate. Arizona A-4 will default to 2.0%. All others will vary by state. Contact your state's Department of Revenue for assistance.
• Current Employees may complete the form to change their current withholding rate or extra amount withheld.

Arizona WEC - Withholding Exemption Certificate (Arizona Form WEC)

A nonresident employee who performs services for an employer within Arizona may claim an exemption from Arizona income tax withholding providing the following two requirements are met:

1. The employee is a resident of, or domiciled in, one of the following states: California, Indiana, Oregon, or Virginia; and
2. The employee is allowed a tax credit for income taxes paid to the employee’s state of residency or domicile pursuant to Arizona Revised Statute (ARS) §43-1096.

Form Deadline: Friday, 5:00 pm, non-pay week

Procedure:

• Complete Arizona Form WEC to claim an exemption from Arizona income tax withholding.
• Submit the completed and signed form to Financial Services Payroll, University Services Building, PO Box 210158, Rm 402. The withholding will become effective on the next scheduled pay date.

Arizona WECI - Withholding Exemption Certificate Native American (Arizona Form WECI)

A tribal enrolled Native American employee who lives and is employed within an Indian reservation established for that tribe and thereby claims that no Arizona state income tax liabilities exist based on the decision by the Supreme Court of the United States in McClanahan vs. Arizona State Tax Commission, 411 U.S. 164, 93 S. Ct. 1257 (1973), may use this form to claim exemption from withholding.

Form Deadline: Friday, 5:00 pm, non-pay week

Procedure:

• Complete Arizona Form WECI to claim an exemption from Arizona income tax withholding.
• Submit the completed and signed form to Financial Services Payroll, University Services Building, PO Box 210158, Rm 402. The withholding will become effective on the next scheduled pay date.

FICA

The Federal Insurance Contributions Act (FICA) is a payroll tax withheld from your pay for both Social Security (OASDI - Old Age Survivor and Disability Insurance) and Medicare (Hospital Insurance). Social Security (OASDI) is withheld on taxable gross income up to a certain wage limit each year, but there is no wage limit for Medicare withholding. The current rates of withholding are 6.2 percent for OASDI and 1.45 percent for Medicare. FICA Wage and Tax Limits are included in the table below.

FICA Limits

FICA withholding rules may differ based on employee types.

Student Employee Guidelines
Internal Revenue Service Code Section 3121(b)(10), known as the "student FICA exception," excludes FICA tax withholding from wages paid to a student who is enrolled and regularly attending classes" at a college or university. The IRS regulations clarifying the student exception to FICA tax for students employed by a school, college, or university where the student is pursuing a course of study are available at:
www.irs.gov/Charities-&-Non-Profits/Student-Exception-to-FICA-Tax

Non U.S. Citizen Employee FICA Guidelines
Non U.S. citizen students and scholars in the following visa classifications: F-1, J-1, M-1 and Q-1 may be subject to special IRS FICA withholding rules.