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.
NOTE: STUDENTS WORKING AT MILLERSVILLE UNIVERSITY, WHILE CLASSES ARE IN SESSION, MAY BE EXEMPT FROM THIS 7.65% TAX!
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.
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.
Electronic Delivery of Your W2 is Available
Students have the option to receive their W-2 electronically via Employee Self Service (ESS). The benefits of signing up for electronic delivery include:
- Faster delivery - have your W-2 up to a week sooner than those that choose paper delivery
- No possibility that your W-2 might be lost, stolen, delayed or misplaced by the U.S. mail service Access is available at the same easy-to-use, secure web site (ESS) at which you already access your leave, pay, benefits, and other general employee information
- Access can be attained even if you are away from your primary residence
- The format of the online W-2 allows an employee to quickly and easily print, just like the current pay statement, in case a paper copy is needed
- Access to view and print copies of your W-2/W-2c as often as needed, at your convenience
You must provide your consent to receive your W-2 in electronic format in lieu of paper format. For this reason, if you wish to attain your W-2 statement only in electronic format, please follow the following steps below. Please note: If you signed up for electronic delivery.
- “Login” to ESS
- “Click” on Employee Self-Service Tab
- “Click” on the Payroll Tab
- Scroll down and “Click” on Update W-2 Election
- “Click” on (I wish to receive my W2 electronically)
- Read the disclosure notice and check the box acknowledging you read and agreed to the terms
- “Click” on Continue with Electronic Enrollment
Once you sign up for electronic delivery, you will always be signed up. No need to renew your electronic request each year.
Please note that if you consent to receive your W-2 electronically, you will not receive a paper copy of your W-2. If you do not consent to electronic delivery you will only receive your W-2 in the mail and will not be able to access it electronically.
Cancellation of Request
You may change your mind and withdraw consent to online delivery using the ESS system. An employee's withdrawal of consent will be effective on the date received. If consent is withdrawn, it will only be effective for those W-2 statements not yet issued.