Medicare wages are generally calculated the same as Federal wages with a few exceptions: This payment of the tax by the university results in additional taxable income to the employee. If the proper amount of tax was not withheld from the employee earnings, the university is required to pay the tax on behalf of the employee. Social Security tax is currently 6.2% of the Social Security wages and tips. If you believe your wages were incorrectly classified as Social Security wages, please contact us. Individuals are required to submit paperwork to the tax department to perform the eligibility analysis. The wages of a nonimmigrant with an immigration classification of J-1, F-1, M-1, or Q-1 may be considered exempt wages for Social Security purposes if the individual is considered a nonresident alien for tax purposes during that year.The eligibility verification occurs each time a paycheck is confirmed and does not require any action on the part of the employee/student in order for the exemption to occur. However, if the individual is working in a career type position (as determined by IU), the exemption will not be allowed and Social Security taxes will be withheld. Generally, the wages of individuals enrolled in courses for credit are considered to be exempt from Social Security tax.For information about the annual wage base, please visit the Social Security Administration website. The Social Security wage base is adjusted annually which means that wages are subject to Social Security until they reach a specified limit.They will be subject to Federal income tax at the time they are withdrawn from the retirement account. Employee contributions to a tax deferred account or the IU Retirement Savings Plan are subject to Social Security and Medicare taxes at the time of payment.Social Security wages are generally calculated the same as Federal wages with a few exceptions: Review the View Paychecks Online page to learn how to access your pay advices in One.IU. If you believe the figure on your form is incorrect, please refer to your pay statement where it reflects the amount withheld from each check and the year-to-date (YTD) figure. Reflects the amount of actual federal income tax withheld on your paychecks during the year. To determine your YTD earnings and deductions from payroll, please review the "How do I re-calculate my Box 1 of my W-2?" on the FAQ page.Minus any wages that will be reported on a Form 1042-S as treaty exempt income (applicable to nonresident alien, or NRA, employees). ![]() medical and dental insurance, parking, tax deferred retirement contributions). ![]()
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