Payroll Taxes

LAST UPDATED: December 5, 2014

What You Should Know

Based on your marital status and the number of exemptions you elected on your W-2 form, the University withholds federal and state taxes from your paycheck. In most cases, the University also is required to withhold Social Security and Medicare taxes (FICA).

State Taxes

If you work for the University in one state and live in another state, you may not be subject to the work income taxes, but will owe state income taxes in the state where you reside.

Pennsylvania Residents Who Work in New Jersey
To avoid having New Jersey state income tax withheld, fill out a Certificate of Non-Residence in New Jersey and send it to payroll by email, fax, or mail. Pennsylvania taxes will be withheld.
Maryland and Virginia Residents Who Work in the District of Columbia
To avoid having DC income tax withheld, fill out a Certificate of Non-Residence in the District of Columbia and send it to payroll by email, fax, or mail. Maryland or Virginia state income taxes will be withheld.

Changing Your State Income Tax Witholding

The HR Self Service system and TigerHub are set so that your state withholding elections default to the same as your federal withholding elections unless you change them by submitting a state withholding form, W-4 form, to payroll by mail, fax, or email.

States in Which Princeton University is an Employer
The list below includes the states in which Princeton University is registered as an employer. Your paycheck will reflect state income tax and unemployment/disability tax withholding for the state in which you work.

California
Colorado
District of Columbia
Georgia
Indiana
Maryland
Michigan
Minnesota
New Jersey
New Mexico
New York
Tennessee (no state income tax, so no W-4 needed)
Virginia
Washington

Exemptions from Social Security & Medicare Withholding

Students and foreign national employees are, in most cases, exempt from Medicare and Social Security (FICA) withholding.

Student Employees: If you are a student, actively enrolled in a degree program at the University, your pay is exempt from Social Security and Medicare taxes for work performed during the academic year. However, if you work for the University during the eight-week summer break, these taxes will be withheld from your paycheck and reported to the IRS on Form W-2.

Foreign National Employees: If you are a foreign national on an F-1 or J-1 visa, you are exempt from Social Security and Medicare taxes throughout the year.

How to Report Taxable Fellowship Payments - Graduate Students who are U.S. Citizens and Resident Aliens: The University is not required to report scholarship or fellowship income to the IRS. It is important to keep records and save the information you will need in order to prepare your personal tax return. Consult your personal tax adviser to discuss making estimated tax payments for the taxable portion of your fellowship income. When preparing your personal income tax return you may need your final pay statement for the year in addition to your W-2 form. More information may be found here.


 

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