FICA/Medicare Taxes

FICA tax refers to the amount employers must withhold from every employee's pay for Social Security and Medicare.  The Social Security taxes (6.2%) you pay during your working years go into your Social Security account which provides benefits that you and members of your family receive when you retire or become disabled.

Similarly, the taxes you pay for Medicare (1.45% of your pay) will provide you with basic health insurance when you reach age 65 or become disabled.

Millersville University as an employer is required to match the amount that you have withheld.


Exempt students:  International students working under an F-1 visa are exempt from FICA taxes since they are ineligible to collect Social Security/Medicare benefits.

Federal Withholding Tax (FWT)

The State System of Higher Education calculates your biweekly Federal Withholding Tax using the percentage method.  Using this method, the amount withheld from your pay is taken from a table issued by the IRS each year which takes into account your marital status (single or married), your biweekly pay schedule, gross wages, and the number of withholding allowances claimed on your Form W-4.

International Students are taxed under different withholding and reporting rules.  Please come the the Payroll Office, Dilworth Building, Room 106 to complete all the necessary paperwork.

Pennsylvania State Tax

3.07% of your earnings will be deducted for Pennsylvania State Withholding.  Pennsylvania requires employers to tax Pennsylvania residents and non-residents unless they are from New Jersey.  Only New Jersey requires a state tax deduction based on the New Jersey percentage method.  Students with a permanent residence in New Jersey must complete a Rev-419 and a New Jersey W4 Form in the Payroll Office in order to be exempt from PA state tax.

Residence Wage Tax

The residence wage tax is required by the employee's residence municipality to be deducted from earnings at a fixed percentage.  For example, if you reside in Lancaster City, that municipality requires a residence wage tax of 1.10% from all wages.

Local Services Tax

This Tax was called OPT (Occupational Privilege Tax) and most recently called EMS Tax.  Local Services Tax replaces this and now withholds $2 per pay rather than a one time deduction of $52.  Exemption forms are available to employees that will earn less than $12,000/year.

Local Services Tax Exemption Form (doc)
Local Services Tax Refund Request Form (doc)

Out-of-State Student Employees

Pennsylvania requires employers to a tax all non-residents at 3.07% of their earnings for Pennsylvania State Withholding unless they are from one of the following six reciprocal sates:  Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia.  Each reciprocal state requires Pennsylvania to report the employee's earnings.  Only New Jersey requires a state tax deduction based on the New Jersey percentage method.  Students with a permanent residence in one of the six reciprocal states must complete a Reciprocal Agreement Form in order to be exempt from Pennsylvania state tax.  This form can be completed in the Payroll Office.