Federal Withholding Tax
Most payments to employees have Federal Withholding Tax deducted based on the IRS Semi-Monthly Tax Withholding Table, your IRS Form W-4 Withholding Allowance Certificate, and any pre-tax deductions you have elected.
Payments made separately from salary payments are exceptions to the withholding tax guidelines, as follows:
- Supplemental Wage payments (e.g., Awards, Employee Separation Authorization Payments—vacation time paid at separation from the UW—as well as some other payments) have a Federal Withholding Tax rate of 22%.
- Taxable Fringe Benefits (e.g., gift certificates, moving expenses, sports tickets, non-job related graduate student tuition over the IRS Section 127 exemption limit, as well as some other payments) have a Federal Withholding Tax rate of 22%.
- Employee benefits such as health care and retirement are pre-tax reductions and are not included as part of your taxable income.
- Stipend Payments
- Scholarship and fellowship payments are not considered wages, and are not reported on Form W-2. Such payments are reported at year end on IRS Form 1098-T.
- Scholarship and fellowship payments may be paid to individuals who are not students at the University of Washington. At year end, information on such payments are summarized in a letter from the ISC.
- For additional information on scholarship and fellowship payments, see IRS Publication 970 Tax Benefits for Education.
- The UW does not withhold federal tax for stipends, scholarships, or fellowships. Withholding information on the Form W-4 does not apply to such payments.
University of Washington employees cannot provide personal, legal, or tax advice.
Withholding Election (IRS Form W-4)
Your IRS Form W-4 Employee’s Withholding Allowance Certificate should be submitted in Workday so that the UW can withhold the correct federal income tax from your pay.
For assistance in filling out the IRS Form W-4, see the see the IRS Withholding Calculator.
IRS Form W-4 updates should be made in Workday and can be made at any time throughout the year.
Exempt status on the IRS Form W-4 is valid for one year. If you are eligible to claim Exempt, your W-4 must be renewed each year by February. If your W-4 information is not renewed or updated on time, by IRS law your tax status automatically defaults to the Single tax tables and zero allowances.
The University of Washington will not refund federal withholding taxes due to either late or incomplete IRS Form W-4 information.
Foreign National employees have special rules for filling out IRS Form W-4.
Additional Witholding Forms Requirements
If you are receiving a pension from the University of Washington, you will need to complete an IRS Form W-4P Withholding Certificate for Pension or Annuity Payments. This must be done on paper and submitted to the ISC.
If you are receiving a supplemental pension from the University of Washington, you will need to fill out IRS Form W-4P Withholding Certificate for Pension or Annuity Payments. If you have questions about your supplemental pension, contact the ISC.