{"id":4582,"date":"2018-03-08T19:31:15","date_gmt":"2018-03-09T03:31:15","guid":{"rendered":"http:\/\/www.wou.edu\/hr\/?page_id=4582"},"modified":"2026-04-14T11:45:23","modified_gmt":"2026-04-14T18:45:23","slug":"payroll-deductions","status":"publish","type":"page","link":"https:\/\/wou.edu\/hr\/payroll\/payroll-deductions\/","title":{"rendered":"Payroll Deductions & Other Tax Information"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.23.4″ _module_preset=”default” custom_padding=”0px|||||” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.5″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n

Payroll taxation is highly regulated and includes a number of different forms for a variety of employee scenarios. The links below will provide helpful information to guide you with answers to most of your questions.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.23.4″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.23.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_heading title=”Mandatory Tax Withholding Required for Most Employees” _builder_version=”4.23.4″ _module_preset=”default” title_level=”h2″ title_font=”|700|||||||” global_colors_info=”{}”][\/et_pb_heading][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

Social Security and Medicare taxes are payroll deductions mandated by the Federal Insurance Contributions Act (FICA). The combined tax rate is 7.65 percent of total gross income, consisting of 6.20 percent for Social Security and 1.45 percent for Medicare. There are maximum earnings limits established each year as taxable maximums for Social Security.\u00a0See annual updates (PDF)<\/a>.<\/p>\n

Exception to Mandatory Withholding<\/strong>: Students at the University who are enrolled in a half-time or more student schedule may be exempt from FICA withholdings. Half-time schedules are equivalent to 5 credits minimum per term for graduate students and 6 credits per term minimum for undergraduate students. It is important to note that if at any time enrollment drops below that level or as a student you are working in a non-student position, FICA withholding will be required. During summer term, student employees will have FICA withholdings on their pay, regardless of enrollment status.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” _builder_version=”4.23.4″ custom_margin=”20px||||false|false” custom_padding=”|15px|0px|15px|false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.23.4″ custom_padding=”25px|25px|25px|25px|false|false” custom_padding_tablet=”|5%||5%|false|true” custom_padding_phone=”|5%||5%|false|true” custom_padding_last_edited=”on|tablet” border_color_all=”#0C71C3″ border_width_top=”6px” border_color_top=”#e7e7e7″ border_width_right=”1px” border_color_right=”#e7e7e7″ border_width_bottom=”1px” border_color_bottom=”#e7e7e7″ border_width_left=”1px” border_color_left=”#e7e7e7″ global_colors_info=”{}”][et_pb_blurb title=”Federal Income Tax” content_max_width=”100%” _builder_version=”4.27.5″ _module_preset=”default” header_level=”h3″ header_font=”Montserrat|700|||||||” locked=”off” global_colors_info=”{}”]<\/p>\n

Federal Income Tax is withheld according to a Federal Tax Table titled \u201cPublication 15\u2013Circular E, Employer\u2019s Tax Guide<\/a>.\u201d The Federal Tax Tables display figures that reflect a combined total for income tax plus Social Security and Medicare taxes. The WOU payroll system utilizes figures listed under the annualized formula to calculate your withholding.<\/p>\n

[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.23.4″ custom_padding=”25px|25px|25px|25px|false|false” custom_padding_tablet=”|5%||5%|false|true” custom_padding_phone=”|5%||5%|false|true” custom_padding_last_edited=”on|tablet” border_color_all=”#0C71C3″ border_width_top=”6px” border_color_top=”#e7e7e7″ border_width_right=”1px” border_color_right=”#e7e7e7″ border_width_bottom=”1px” border_color_bottom=”#e7e7e7″ border_width_left=”1px” border_color_left=”#e7e7e7″ global_colors_info=”{}”][et_pb_blurb title=”Oregon Income Tax” content_max_width=”100%” _builder_version=”4.27.5″ _module_preset=”default” header_level=”h3″ header_font=”Montserrat|700|||||||” locked=”off” global_colors_info=”{}”]<\/p>\n

The Oregon Tax Tables are found in the\u00a0Oregon Withholding Tax Tables (PDF)<\/a> and Oregon Withholding Tax Formulas (PDF)<\/a>. It is recommended that you reference \u201cThings You Need to Know\u201d to gain relevant information for your income and needs. The WOU payroll system utilizes\u00a0the monthly tax tables to calculate your withholding.<\/p>\n

[\/et_pb_blurb][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.23.4″ _module_preset=”default” custom_padding=”1px|||||” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.23.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.23.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_heading title=”Filling out the W-4 Form” _builder_version=”4.23.4″ _module_preset=”default” title_level=”h2″ title_font=”|700|||||||” global_colors_info=”{}”][\/et_pb_heading][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

The W-4 Form is used by WOU to determine the correct federal and state income tax to withhold from your pay. A complete form is required for each employee who receives pay from the University according to the Internal Revenue Laws of the United States. The information requested under \u201cEmployee\u2019s Withholding Allowance Certificate\u201d must be provided to the University.<\/p>\n

Different Requirements Depending on Employee Status<\/strong><\/h3>\n

US Citizens<\/strong>\u00a0and employees with Resident Alien or Substantial Presence Status<\/strong>\u00a0will find detailed guidance on the W-4 Form\u00a0on the factors to consider when completing the Employee\u2019s Withholding Allowance Certificate, including when and if individuals may claim exemption from withholding.<\/p>\n

The Substantially Present Status is based upon a test as outlined below that reflects each person\u2019s individual situation rather than in accordance with Non-Resident Alien restrictions outlined below. If you meet the test for Substantially Present you will need to review procedures for filing a tax return, as well\u2013refer to\u00a0IRS Publication 17\u2013Your Federal Income Tax<\/a>. Additional information regarding the test to determine Substantial Presence is located in the\u00a0IRS Publication 519\u2013US Tax Guide for Aliens<\/a>.<\/p>\n

Restrictions for Completing the W-4 Form for Non-Resident Alien<\/strong><\/h3>\n
    \n
  1. Check \u201cSingle\u201d on line 3 regardless of your marital status.<\/li>\n
  2. Claim \u201c1\u201d allowance on line 5 (see below for exceptions)<\/li>\n
  3. You may NOT claim \u201cExempt\u201d on Line 7.<\/li>\n
  4. You must write \u201cNon Resident Alien\u201d or \u201cNRA\u201d above the dotted line in line 6.<\/li>\n<\/ol>\n

    Non-Resident Alien (NRA)<\/a>\u00a0employees at the University must adhere to the following restrictions when filing out the Form W-4. Failure to comply with these restrictions can result in Internal Revenue Service penalties and fines. Detailed instructions are found under the\u00a0IRS Publication 519\u2013US Tax Guide for Aliens<\/a>.<\/p>\n

    If you are a resident of Canada, Mexico, or South Korea, you may claim more than one allowance on line 5. Students from India may claim an allowance for an accompanying spouse and dependent children who are US citizens or residents. US Nationals of American Samoa and the Northern Mariana Islands may also claim allowances for dependents.<\/p>\n

    Changing Withholdings<\/strong><\/h3>\n

    The W-4 Form may be updated by completing a new form whenever there is a change in your individual tax situation and you would like your withholdings to reflect this. Changes may include events such as marriage, divorce, adding a new dependent, increase or decrease in FTE, and so on. Please note that if you submit a W-4 Form reflecting an exemption from withholding, you must complete a new request for this exemption by February 10th of each year, as the exemption status expires each year in February.<\/p>\n

    If you wish to withhold additional amounts for Federal and\/or State, you may do so by clearly writing the dollar amount that you wish deducted, on line 6, and specify whether it is for Federal only, State only, or the amount for each.<\/p>\n

    You may also refer to the\u00a0IRS Federal Tax Calculator<\/a>\u00a0and the\u00a0Oregon Department of Revenue Tax Calculator<\/a>\u00a0for more guidance on tax withholding.<\/p>\n

    To\u00a0complete or update your W-4, please come to the Human Resources Office, Admin. 306.<\/p>\n

    [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.23.4″ _module_preset=”default” custom_padding=”0px||||false|false” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.23.4″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.23.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_heading title=”Tax Treaties and Non-Resident Alien Guidelines” _builder_version=”4.23.4″ _module_preset=”default” title_level=”h2″ title_font=”|700|||||||” global_colors_info=”{}”][\/et_pb_heading][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

    The United States has negotiated tax treaties with many other countries in the world. Oregon has chosen to honor these tax treaties, and Western Oregon University has chosen to extend treaty benefits through payroll to those employees who are eligible under the provisions of a tax treaty.<\/p>\n

    Please bear in mind that not all treaties exempt income earned in the United States from income taxes. Some treaties exempt income received from foreign sources for the support of a student or faculty member while here. Most treaties contain clauses to eliminate double taxation of a foreign national while here. The true limit on most treaties is calculated from the first date of arrival in the United States. IRS rules regarding treaties can be found in\u00a0Publication 519\u2013US Tax Guide for Aliens<\/a>\u00a0and in the\u00a0Publication 901\u2013US Tax Treaties<\/a>.<\/p>\n

    Remember that Tax Residency and Citizenship are not the same. The information provided\u00a0under this tab\u00a0refers to Tax Residency. Considerations evaluated relative to what taxes you may be subjected to on your income are based on a set of criteria. Your income tax determination will hinge upon your eligibility for a tax treaty, and your FICA (Social Security and Medicare) is determined by the type of visa you have been granted and whether you have met the test for substantial presence or the green card test.<\/p>\n

    [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.23.4″ _module_preset=”default” custom_margin=”|auto|2px|auto||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.23.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_heading title=”Important Definitions” _builder_version=”4.23.4″ _module_preset=”default” title_level=”h3″ title_font=”|700|||||||” title_text_align=”center” global_colors_info=”{}”][\/et_pb_heading][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” _builder_version=”4.23.4″ custom_margin=”20px||||false|false” custom_padding=”|15px||15px|false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.23.4″ custom_padding=”25px|25px|25px|25px|false|false” custom_padding_tablet=”|5%||5%|false|true” custom_padding_phone=”|5%||5%|false|true” custom_padding_last_edited=”on|tablet” border_color_all=”#0C71C3″ border_width_top=”6px” border_color_top=”#e7e7e7″ border_width_right=”1px” border_color_right=”#e7e7e7″ border_width_bottom=”1px” border_color_bottom=”#e7e7e7″ border_width_left=”1px” border_color_left=”#e7e7e7″ global_colors_info=”{}”][et_pb_blurb title=”Non-Resident Alien (NRA)” content_max_width=”100%” _builder_version=”4.27.5″ _module_preset=”default” header_level=”h3″ header_font=”Montserrat|700|||||||” locked=”off” global_colors_info=”{}”]<\/p>\n

    Non-US citizen who holds a VISA. Some VISAs allow the holder to work with the proper authorization. Non-Resident Alien employees are subject to Federal and State income taxes and may be exempt from FICA withholdings. There are restrictions imposed when completing the W-4 Form due to Internal Revenue Service filing options for NRAs. You may refer to IRS Topic 851 <\/a>for additional information.<\/p>\n

    [\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.23.4″ custom_padding=”25px|25px|25px|25px|false|false” custom_padding_tablet=”|5%||5%|false|true” custom_padding_phone=”|5%||5%|false|true” custom_padding_last_edited=”on|tablet” border_color_all=”#0C71C3″ border_width_top=”6px” border_color_top=”#e7e7e7″ border_width_right=”1px” border_color_right=”#e7e7e7″ border_width_bottom=”1px” border_color_bottom=”#e7e7e7″ border_width_left=”1px” border_color_left=”#e7e7e7″ global_colors_info=”{}”][et_pb_blurb title=”Resident Alien (RA)” content_max_width=”100%” _builder_version=”4.27.5″ _module_preset=”default” header_level=”h3″ header_font=”Montserrat|700|||||||” locked=”off” global_colors_info=”{}”]<\/p>\n

    Non-US citizen who holds a Green Card or qualifies under the \u201cSubstantial Presence Test\u201d. If you become a lawful permanent resident of the US at any time during the calendar year you are considered a resident alien. Resident Alien employees are subject to Federal and State income taxes as well as FICA withholdings under the same rules as a US citizen.<\/p>\n

    [\/et_pb_blurb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.23.4″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.23.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.23.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

    Required Forms for All Non-Resident Alien and International Employees<\/strong><\/h3>\n
      \n
    1. The CO-NRA Form is a required form for all international employees. It allows us to determine what taxes you are subject to in the US and evaluate your treaty eligibility (if applicable). Foreign employees must fill this out when:<\/li>\n<\/ol>\n