The Payroll Services staff is available to assist employees in completing federal and state tax forms. However, Payroll Services is not permitted to give tax advice.
Employees may use the Oracle Administrative System to submit federal and state tax forms. Federal and State of Alabama tax forms are available via the Oracle Administrative System. Documentation on how to use the online forms is available here.
Tax withholdings vary according to an individual's specific situation. Employees are subject to the following tax withholdings:
- Federal Tax
- State Tax (Alabama)
- A-4 (must be submitted via Oracle Administrative System)
- Out of State
- Federal Insurance Contributions Act (FICA)
- Social Security - 6.20%
- The Social Security rate was dropped by 2% in 2012 to 4.20%.
- Medicare - 1.45%
- Additional Medicare - 9% for individuals with income above $200,000 ($250,000 for married couples filing jointly)
- Student FICA
City Tax
- Birmingham - 1.00%
- Bessemer - 1.00%
County Tax
City tax withholding is dependent on the employee's work location. Days worked outside the city may qualify for a refund of taxes withheld. Click here for the form to request a refund of city taxes.
Social Security taxes are subject to a taxable wage cap:
|
Year
|
Social Security Wage Cap
|
|
2013
|
$ 113,700.00
|
|
2012
|
$ 110,100.00
|
|
2011
|
$ 106,800.00
|
|
2010
|
$ 106,800.00
|
|
2009
|
$ 106,800.00
|
|
2008
|
$ 102,000.00
|
|
2007
|
$ 97,500.00
|
|
2006
|
$ 94,200.00
|
|
2005
|
$ 90,000.00
|
|
2004
|
$ 87,900.00
|
|
2003
|
$ 87,000.00
|
|
2002
|
$ 84,900.00
|
|
2001
|
$ 80,400.00
|
|
2000
|
$ 76,200.00
|
When an employee meets the social security taxable wage cap within the tax year, social security taxes are no longer withheld. The social security tax withholding is reset each January and subject to the tax year's wage cap.
Scholarship and fellowship payments are subject to different taxation rules than compensation. Click here for more information regarding the taxability of scholarship and fellowship payments.
Non-US citizens are subject to specific taxation withholding rules. Click here for more information.