Here is a quick synopsis of the tax withholding that you may see on your pay stub.
Federal income tax withheld (FITW): This tax is withheld based on the way you complete your W-4 form. The more allowances you claim, the less tax that is withheld. If you claim zero allowances, you will have the maximum withholding. The marital status that you indicate in box 3 also determines the amount withheld—“single” has a higher rate of withholding than “married.” The Federal Income Tax that is withheld over the course of the calendar year is reported to you on your W-2 form. If you would like to calculate your estimated tax withheld in order to make adjustments, please click on this link to the IRS site IRS TAX WITHHOLDING ESTIMATOR.
Social Security tax (FICA): This tax is withheld at a rate of 6.2% of your applicable gross earnings, up to the current annual taxable maximum amount. Please visit ssa.gov/oact/cola/cbb.html for the current year maximum amount. Once this threshold is attained, no further FICA withholdings will occur in 2003. Student employees are exempt from this tax for the quarters in which they are actually enrolled for at least half-time. It is uncommon for students to have FICA taxes withheld during the school year, but quite common during the summer. Payroll runs a report that indicates who is eligible for this exemption. If you think an error in your FICA withholding has occurred, please contact the Payroll Office.
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