Learn About Withholding Information

Learn about withholding information, imputed income, and supplemental wage tax rates. 

Details

Certain payments to University employees are taxable, such as payments for commuting expenses, parking costs (above the qualified parking amount), health insurance reimbursements, relocation expenses, storage fees, all employee cash or cash equivalent gifts, non-cash gifts of $100 or more and some tuition costs.

The University does not reimburse for these costs. If a School or department chooses to cover these costs for an employee, they are considered taxable and will be reported to Payroll for inclusion on the employee’s W-2.

2025

FICA OASDI (Social Security) up to the maximum wage of $176,100 will be taxed at the rate of 6.2%. The maximum withholding on FICA EE OASDI for 2025 is $10,918.20.

FICA Medicare for all employees will be taxed at the rate of 1.45%.

The Additional FICA Employee Medicare rate of 0.90% will be taxed on employees who reach over $200,000 in earnings. (Employees in this category will be taxed at a total Medicare Rate of 2.35%.)

There is no cap on Medicare Wages.

2024

FICA OASDI (Social Security) up to the maximum wage of $168,600 will be taxed at a rate of 6.2%. The maximum withholding on FICA EE OASDI for 2024 is $10,453.20

FICA Medicare for all employees will be taxed at a rate of 1.45%.

The Additional FICA Employee Medicare rate of 0.90% will be taxed on employees who reach over $200,000 in earnings. (Employees in this category will be taxed at a total Medicare Rate of 2.35%.)

There is no cap on Medicare Wages.

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