FICA taxes are broken down into two parts: Social Security and Medicare. Temple University is required to withhold FICA taxes for all employees for whom it is applicable. Undergraduate and Graduate students who currently enrolled in a minimum of 6 credit hours for the Fall and Spring semesters and a minimum of 3 credit hours during each of the Summer Sessions are exempt from FICA taxes. Foreign Nationals on F1, J1 visas who have not stayed more than five years in the United States as a student or two years as a visiting teacher/researcher may also be exempt from FICA taxes. Also, certain fellowships and scholarships are exempt from FICA taxes.
C urrent FICA Tax Rates:
- Social Security 6.2% *See Note (1) Medicare 1.45% Additional Medicare 0.9% *See Note (3)
Certain types of deductions, such as medical benefits, medical spending, qualified parking and transportation benefits, and dependent care may reduce the FICA taxable income for an individual.
Wages paid in excess of $200,000 to high-earner employees will be subject to an extra 0.9% Medicare tax that will be withheld from those employees’ wages.
Temple University is required to withhold Federal Income Tax (FIT) for all employees for whom it is applicable. Certain fellowships and scholarships, as well as Foreign Nationals who qualify for treaty benefits, are exempt from FIT.
Certain types of deductions, such as retirement, medical benefits, medical spending, dependent care, qualified parking and transportation benefits may reduce the FIT taxable income for an individual.
There is not one specific amount or percentage of income that the University must withhold for an individual. Taxation is based upon an individual’s filing status (Single or Married) and the number of allowances that he claims. The federal Form W-4 is the document that must be used to make this election. For specific amounts, refer to the IRS tax
charts by clicking the link below.
Temple University is required to withhold both State of Pennsylvania Income Tax (SIT) and State Unemployment tax from compensation of resident employees for services performed either within or outside Pennsylvania, and from wages of nonresident employees for services performed within Pennsylvania.
Certain types of deductions, such as medical benefits, may reduce the SIT taxable income for an individual.
Pennsylvania has reciprocal agreements with six states: New Jersey, Maryland, Indiana, Ohio, Virginia, and West Virginia. Under these agreements, one state will not tax the others’ residents on employee compensation that is subject to employer withholding. Reciprocal agreements apply only to compensation, not to other classes of income.
Employees who are residents of New Jersey or one of the other reciprocal states who would like to take advantage of the reciprocal agreement must complete Pennsylvania Form REV-420. Employee's Statement of Non-Residence in Pennsylvania and Authorization to Withhold Other State's Income Tax and submit the form to Payroll Management.
Please be advised, Temple University is not required to withhold the reciprocal states withholding tax and will not withhold the other states taxes. Therefore you may be required to file estimated taxes in your resident state. We recommend that you seek tax advice before making this election.
Current Income Tax Rate for Pennsylvania: 3.07%
Current Unemployment tax rate for Pennsylvania: 0.07%
Temple University currently withholds local wage taxes for municipalities in which it has a physical presence, such as a campus, physicians practice, or other facility. Many municipalities have a local wage tax of 1.0% and/or a one-time Occupational tax and/or an Emergency and Municipal Services Tax (EMST). Residents of the City of Philadelphia must pay wage tax at the current tax rate in effect regardless of where they are physically located when performing services.
Local, Regional and National Tax Rates