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The following information is educational information and not advice Your personal situation will impact your decision on how to have taxes withheld If.

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Presentation on theme: "The following information is educational information and not advice Your personal situation will impact your decision on how to have taxes withheld If."— Presentation transcript:

1 The following information is educational information and not advice Your personal situation will impact your decision on how to have taxes withheld If you have a hard time making this decision consider consulting a professional Basic examples and explanations from the Internal Revenue Service are provided For more information, see Understanding Taxes – Students.Understanding Taxes – Students

2 You complete this form which Payroll uses to know how much tax to withhold each time you’re paid. Form W-4/MW 507

3 Tax Withholding Form W-4/MW 507  What does tax withholding have to do with your paycheck? Your employer withholds (deducts) specific amount of money from each paycheck based on how you complete Form W4. This tax money is sent to the tax agencies each time you get paid. The amount of money taken out of your paycheck depends on how much money you earn and how many allowances you claim A chart generating the amount of tax money a single person has to pay in 2010 based on income and tax withholdings can be found on pages 51 and 52 of the following link: A similar chart for married persons can be found on pages 53 and 54.

4 Example:  A student worker who is single and wrote “1” on line 3 on the W-4/MW 507, makes $ in a pay period.  This earned incomes falls in the $115-$120 bracket.  In the “1” column of the chart below, it says that $8.99 tax is to be withheld.  Therefore, a paycheck for about $ ($ $8.99) will be issued. TU pays every 2 weeks (bi-weekly) Form W-4/MW 507

5 Section 1: Employee Information Students are Contingent (CT) employees 1.Check off “CT” on the “Payroll system” (top) line. 2.Fill out all of the Section 1: Employee information (see below) Please note that you must fill out your COUNTY of residence, not your country of residence 3.After successfully filling out the form, sign and date the bottom. x Towson University John Smith 1111 Something Street Some CityMD22222Maryland county

6 Section 2: Federal Tax In the above example, the employee is single and claiming 1 allowance. Notice how he checked off “Single” in line 3 and wrote “1” on line 5. All other lines and boxes should be left blank. Check Marital Status, # of Allowances or Exemption Tips: Check your marital status on Line 3 On line 5, enter the number of withholding allowances, such as “1” if you are single with no dependents You can claim exemption on line 7 if you will not earn more than $3,700 in 2011 Complete either line 5 or 7 - not both!

7 Section 2: Federal Taxes A single, full time student is claiming exempt. Notice how “Single” is checked and “Exempt” is written on line 7. All other lines and boxes are left blank. Example 2

8 Scenarios Form W-4/MW 507 George is claiming “0” because he: → Wants to have the MAXIMUM amount of taxes withheld from each pay. Linda is claiming “1” because she: → Is claiming the personal exemption for herself now instead on her tax return. Michelle is claiming “exempt” because she: → Did not owe any taxes last year. → Does not expect to owe any taxes this year. → Is a full-time student. → Will not earn more than $3,700 in 2011 (all jobs combined). → Is claimed as a dependent by her parents on their tax return.

9 Section 3: Maryland Tax Section 3 is filled out in the same way as Section 2, only on different lines. If you are a full-time student and will earn less than $9,650 in 2010 you can be exempt from state taxes. TO CLAIM EXEMPT Check 2 boxes MARITAL STATUS Tax Year TAX ALLOWANCE Write EXEMPT here

10 Form W-4/MW 507  For a single person who is not claiming any exemptions (i.e. claiming “0” – maximum taxes):  For a married person who is claiming one exemption (i.e. claiming “1”):  For someone who is claiming exempt: Section 3: State Tax Withholding Below are some examples of how Section 3 can be filled out.

11 There is a student exemption for FICA tax. To qualify, a student must: Be taking a minimum of 6 credit hours. Therefore, a TU student who works at Towson University is FICA exempt if they are registered for 6 credit hours or more! During the summer if you are not taking 6 credit hours, FICA tax is automatically deducted. FICA Taxes (Social Security/Medicare) Form W-4/MW 507

12 Getting Paid  It takes around 4 weeks to receive your first paycheck once you’ve completed the student hiring process.  Your paychecks will be mailed to the address specified on W-4/MW 507 Form.  Pay periods end every other Friday and checks are mailed 12 days later.  It usually takes around 2 days to receive the paycheck in the mail.  To receive your payment on the pay date, sign up for direct deposit!

13 1.Check off “Contract” on the “Payroll System” (top) line. 2.Complete personal information required at top. 3.If this is your first job on campus, check “1” to set up direct deposit into the account you specify. 4.Fill in bank name and mark which type of account it is (checking or savings). 5.Bank Number is the routing number found on bottom of a check. It is 9 digits. (It is not the number on deposit slip). 6.Write the checking or savings account number. 7.Sign and date the bottom of form. 8.Submit form to Payroll Office. Direct Deposit Form This form allows TU to deposit your earnings directly into your checking/savings account. It is not mandatory but is strongly recommended.

14 It might take a few pay periods for direct deposit to activate. Until direct deposit is setup checks will be mailed to the address provided on W-4/MW 507 form. If you change your direct deposit account, you will get a check in the mail until the new account is setup. Direct deposit is done through the Payroll Online Service Center. The following slide provides more information. Payroll Information Direct Deposit It is important to keep your current address on file with the Payroll Office to prevent stolen or lost checks.

15 Payroll Online Service Center A secure web-access website maintained by State of Maryland Central Payroll Bureau. POSC affords you many benefits: Bi-weekly pay advices for the last 12 months. Year-end information. Duplicate W2 forms for past 3 years. Changing your W-4/MW 507 tax withholding online. Updating your name and address. Changing bank information (i.e. what account your paycheck will directly deposit into). By using POSC you help save trees because CPB won’t have to print your paychecks every 2 weeks

16 Payroll Online Service Center How to Sign Up You will need: Your Social Security # Number of a check you received in last 6 months TU’s Agency # To begin:  Go to  Click on “POSC” icon in upper right corner of website.  Click on “Sign up.” You will need to enter your date of birth, your Social Security number, Towson’s agency number (360224), and the check/advice number from your most recent check.  To go paperless, click on “Signup/Modify Web access only” and check “Yes- I want Web Access Only” https://interactive.marylandtaxes.com/Extranet/cpb/POSC/User/Start.aspx

17 Timesheets are due every other Friday at noon per bi-weekly contingent schedule.schedule Daily Digest which will notify you if timesheets are due early. Join the Student Financial Services Facebook and Twitter communities to received important reminders! Refer to bi-weekly contingent payroll schedule on the Financial Services website to stay current! Timesheet Overview Payroll Information

18 Electronic Timesheets Payroll Information Timesheets are not available until the first Tuesday or Wednesday of each pay period. You can access your timesheet at: https://inside.towson.edu/Intranet/LDAPSecurity/loginPS.cfm https://inside.towson.edu/Intranet/LDAPSecurity/loginPS.cfm Sign in using your TU NetID and password. Click on the active timesheet that you want to update FOR EACH JOB. Fill in your work hours and click on “Save Entries.” Timesheets MUST be approved by BOTH you and your supervisor in order to get paid.

19 In case of the following: Timesheet was not approved on time. You did not enter your work hours before the deadline Submit a paper timesheet to the Payroll office (Admin. Building, 4 th floor). Fill out all of the pertinent information and get it signed by your supervisor before bringing it to payroll. Paper Timesheets Payroll Information

20 Help Line If you ever have any questions - call the Help Line at (410) or


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