Radford University is required by law to withhold certain mandatory deductions from employee pay, which include:
In addition, full-time employees have required contributions deducted for retirement plans, as participation in one of the available plans is a condition of employment.
Full-time state employees are provided with life insurance equal to two times their annual salary, with premiums paid by the university. The life insurance benefit is tax-free up to $50,000. However, the IRS mandates that employees pay taxes on the value of any life insurance provided by the university above $50,000.
Voluntary payroll deductions can only be withheld from an employee's paycheck if the employee has authorized the deduction through an agreement. Examples of voluntary deductions include:
Health Insurance Premiums
The IRS Form W-4 is completed by the employee to inform the Payroll Office how much to withhold from their paycheck for federal taxes. Accurately completing the W-4 can help prevent owing additional taxes when filing your annual income tax return and can also prevent overpaying taxes throughout the year.
If you have questions about submitting the tax form, please call the Payroll Office at x7610. Inaccurate information on a tax form can void it entirely. While Payroll can assist with understanding how to complete the form, Payroll staff are not authorized to provide tax advice. For tax advice, please consult a Tax Accountant. Additional resources are available on the IRS website.
The Form W-4 2020 Presentation located on the Training Catalog -Controller's Office page within D2L provides detailed guidance on completing the form.
Supplemental Tax: Certain employee earnings, such as bonuses and leave payouts, may be subject to supplemental tax withholding. Generally, the tax withheld will be approximately 35.4% of the total taxable income, though this can vary depending on specific circumstances. This rate is based on the following tax guidelines:
Exemption: Not all employees are eligible to claim exemption from federal income tax withholding. To qualify for exemption, employees must meet specific criteria. Employees can claim an exemption if both of the following conditions apply:
Other factors also influence whether an employee can be exempt from federal income tax withholding. For assistance in determining if you qualify for exemption, refer to IRS Publication 505.
Employees who claim an exemption must submit a new Form W-4 by February 15 each year to continue claiming an exemption for the current tax year. If the form is not submitted by this date, Payroll will withhold federal income tax at the single filing status with no adjustments.
To qualify for an exemption on the Virginia state tax form (VA-4), employees must meet the criteria outlined in the instructions on the VA-4 form. A new VA-4 must be filed with the Payroll Department each year to claim exemption from Virginia state tax withholding, as exemptions expire on December 31.
FICA Exemption: Student employees are exempt from FICA taxes if they are enrolled at least half-time at the University. This exemption applies to work-study/scholarship, wage employees, and Graduate Assistants. To qualify, the student employee must not hold another "career position" on campus. F-1 visa students receiving compensation from on-campus employment are also exempt from FICA taxes. For additional information, refer to the FICA exemption policy .
Some benefits provided to employees are not paid in cash but are considered taxable income. Taxable fringe benefits include, but are not limited to: