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what is fica taxes

Federal and State Withholding

W-4 and NC-4 forms

All employees should fill-out a W-4 form and NC-4 form for federal and state withholding taxes. These are available in the Human Resources Department and in the Payroll Office in Phillips Hall. If no W-4/NC-4 is on hand in time for payroll processing, then the required assumption is that the employee is single with no exemptions.

Employees must file an amended Form W-4 and NC-4 if their filing status, exemption allowances or exempt status has changed since the last filing of their withholding forms.

Instructions/Sample W-4 and NC-4EZ forms

To view Sample W-4 and NC-4EZ forms, click here: Sample W-4 and NC-4EZ

Federal And State Tax Forms

If claiming "exempt" from Federal and/or State Withholding

Employees claiming "exempt" from withholding on their Forms W-4 and/or NC-4 must complete new forms each year by February 15th in order to keep their exempt status. Employees that do not submit new forms by the deadline will be processed as single with zero withholding allowances.

Deductions not subject to Federal and State Withholding

Certain deductions are not subject to Federal and State Withholding taxes. Retirement contributions (TSERS and ORP), medical insurance deductions, NC Flex deductions, university parking fees, and supplemental retirement deductions (401k, 403b, 457 Plans) are tax deferred (not subject to federal or state withholding).

FICA and Medicare Taxes

The Federal Insurance Contributions Act (FICA) provides for a system of old-age, survivors, disabilty, and hospital insurance. The 2015 FICA tax rate is 6.2% for the employee and 6.2% for the employer up to the wage base limit of $118,500. The current Medicare tax rate is 1.45% for both the employee and employer. There is no wage base limit for Medicare tax.

Deductions not subject to FICA and Medicare

Certain deductions are

not subject to FICA and Medicare taxes. Medical insurance deductions, NC Flex deductions, and university parking fees are not subject to FICA and Medicare taxes.

Student FICA exemption

Students employees who are enrolled at least half-time (6 credit hours in the fall and spring semesters or 3 credit hours in the summer session) are exempt from FICA taxes. However, any student who is also a full-time employee of the university is not exempt from paying FICA tax. In this situation, the individual's major function is deemed to be that of a full-time employee, and as such, they do not qualify for the student FICA exemption.

W-2 Forms

Paper W-2 forms (for employees who have not given consent to receive them electronically) will be mailed by the last day of January to the address that is in the payroll system. Please check the address on your paycheck or notice of direct deposit to make sure that it is correct.

Requesting duplicate W-2 Forms

Employees may contact the Payroll Department to request duplicate W-2 forms. It may take up to a week to process requests for duplicate W-2 forms. Tax information for years prior to the year 2000 cannot be reproduced in W-2 format.

Employees with active UNC Asheville email accounts can reprint W-2s beginning with the year 2010 by following the steps found on the "W-2 Tax Information" tab to the right.

Please be aware that in 2010 UNC Asheville transitioned from one payroll system to another and that the 2010 W-2s that are on-line only represent the earnings for 2010 that were on the Banner Payroll system. You might need an addtional W-2 for the part of the year that you were paid from Central Payroll in Raleigh. Contact the Payroll Department for further information.

Last edited by bterry on 06/09/2015

Category: Insurance

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