Payroll Deductions & Other Tax Information

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.

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. See annual updates.

Exception to Mandatory Withholding: 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.

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 “Employee’s Withholding Allowance Certificate” must be provided to the University.

Different Requirements Depending on Employee Status

US Citizens and employees with Resident Alien or Substantial Presence Status will find detailed guidance on the W-4 Form on the factors to consider when completing the Employee’s Withholding Allowance Certificate, including when and if individuals may claim exemption from withholding.

The Substantially Present Status is based upon a test as outlined below that reflects each person’s 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–refer to IRS Publication 17–Your Federal Income Tax. Additional information regarding the test to determine Substantial Presence is located in the IRS Publication 519–US Tax Guide for Aliens.

Restrictions for Completing the W-4 Form for Non-Resident Alien

1. Check “Single” on line 3 regardless of your marital status.
2. Claim “1” allowance on line 5 (see below for exceptions)
3. You may NOT claim “Exempt” on Line 7.
4. You must write “Non Resident Alien” or “NRA” above the dotted line in line 6.

Non-Resident Alien (NRA) employees 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 IRS Publication 519–US Tax Guide for Aliens.

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.

Changing Withholdings

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.

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.

You may also refer to the IRS Federal Tax Calculator and the Oregon Department of Revenue Tax Calculator for more guidance on tax withholding.

To complete or update your W-4, please come to the Human Resources Office, Admin. 306.

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.

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 Publication 519–US Tax Guide for Aliens and in the Publication 901–US Tax Treaties. 

Remember that Tax Residency and Citizenship are not the same. The information provided under this tab refers 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.

Required Forms for All Non-Resident Alien and International Employees

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:

• • Employment begins
  • Visa status changes
  • At the start of each calendar (tax) year–due by January 10th
  • Failure to submit a CO-NRA on time will result in all taxes being withheld from your pay until such time that you submit the form to the Office of Human Resources.

1. If your home country has negotiated a treaty with the United States and you would like to claim treaty benefits, complete the IRS Form 8233.
2. Bring all the completed forms to the Office of Human Resources along with your 1-20 or S, on-campus work authorization and passport with visa and I-94.

At the end of each calendar year, the University is required to issue a Form W-2 or 1042-S outlining wages you received at any time during the prior calendar year. A 1042-S is issued to anyone who claimed treaty benefits in the tax year. Individuals who performed services for the University as Independent Contractors receive a Form 1099 in late January from University Financial Services.

W-2 Wage and Tax Statements are available for you to view, and/or print an official copy, from WolfWeb. Simply log in to WolfWeb and follow the links through Employee Menu, Tax Forms, W-2 Wage and W-4 Statement. Select the Tax Year and click “Display.”

Employees are then required to submit a tax return by April 15th of each year for the prior year for both Federal and State governments even if no taxes are owed. The following links should assist you in this process.

Obtaining Assistance in Tax Return Preparation

The Volunteer Income Tax Assistance (VITA) program provides free tax preparation services to individuals who are below certain income thresholds. Visit the IRS Free Tax Preparation page for more information.

Reading and Understanding Deductions on your Pay Stub

The following is a list of deduction codes that you may see on your pay stub. To view the deductions from your pay, please login to WolfWeb. You can also view a sample Pay Stub.