There are two types of payroll deductions: voluntary and involuntary. The Payroll Department is instrumental in making sure that your deductions are accurate and are sent to the correct organizations.
Involuntary deductions are those which are required by law, such as taxes, garnishments, child support, and state mandated retirement programs.
A wage garnishment is a legal procedure through which a portion of an employee's wages are required to be withheld by the employer for the payment of a debt incurred by the employee. Garnishments can be for IRS, state, or county taxes as well as child support, education loans and bankruptcy.
Title III of the Consumer Credit Protection Act limits the amount of an employee's earnings that may be garnished and protects the employee from being fired if pay is garnished for only one debt. For further explanation, please refer to the US Dept of Labor Fact Sheet #30 regarding garnishment law.
The Payroll Department regularly reviews all applicable payroll tax regulations in order to maintain compliance with Federal and State law. The Payroll Department works in conjunction with the State Controller's Office and Windstar Technologies in order to remain compliant when processing payments to non-resident alien employees.
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 Eller 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.
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, and supplemental retirement deductions (401k, 403b, 457 Plans) are tax deferred (not subject to federal or state withholding).
The Federal Insurance Contributions Act (FICA) provides for a system of old-age, survivors, disability, and hospital insurance. The current FICA tax rate is 6.2% for the employee and 6.2% for the employer up to the wage base limit. The correct 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 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.
The Payroll Department processes W-2s for all university employees. WSSU is required by the IRS to furnish all employees with a W-2 form for each calendar year. The W-2 form details the employee’s compensation, tax withholdings and required disclosures for the year.
Current employees may elect to receive their W-2 statement online through Banner Self Service in an IRS approved PDF format. Electronic W-2 is the fastest and most secure way to receive your W-2. By electing this option, an employee’s W-2 tax information will be available for review much faster than receiving it by mail. Get started & do it today!
Federal regulations require that employees give their consent to receive the W-2 in an electronic format. Once consent is given it carries forward each year and does not need to be repeated as long as the employee is still working for the university.
If you consent to receive your W-2 electronically, you must give your consent by typically January 15 of the following year. Once the W-2’s are processed, current employees who gave their consent will be able to view and print the earning statements immediately. An email notification will be sent to employees when W-2’s are available on Banner Self Service. This allows you to print and send the on-line form with your tax return. A paper W-2 will not be mailed.
Setting Up Your Electronic W-2
From Banner Rams Online
- Enter your Banner ID and Pin
- Click the “Employee” tab
- Click “Tax Forms”
- Click “W-2 Consent”
- Check the box “My Choice” to consent to receive your W-2 electronically
- Click "Submit"
How Do You Benefit From Receiving Your W-2 Electronically?
- Access to the W-2 statement earlier than traditional paper process
- No lost or stolen statements or delay with the mail
- No worrying about not getting your W-2 in time to complete your taxes
- Will be able to get an approximate picture of your tax liability or refund earlier!
- Contribute to cost savings (forms, printing and postage expense)
- Statements will remain online for multiple years.
- Secure and Easy Access Anytime
- Ability to print Multiple Copies
- No frustration! You’re in control!
Viewing And Printing Your W-2
From Banner Rams Online
- Enter your Banner ID and Pin
- Click on the “Employee” tab
- Click “Tax Form”
- Click “W-2 Year End Earnings Statement”
- Select appropriate tax year
- Click "Display"
- To create Federal and State and personal acceptable copies of your W2 to send in with your taxes, click on Printable W-2 at the bottom of the Display page
- Click on File
- Click on Print
Employees can receive paper copies of their W-2 form. If an employee chooses the paper option W-2 forms are mailed by the last day of January to the address that is in the payroll system. You must any address changes for the current tax season prior to January 15 of the current year. Please check the address on your paycheck or notice of direct deposit to make sure that it is correct.
If you did not receive your W-2 in the mail, it is possible that the University does not have your most current address. Please email your current address to firstname.lastname@example.org only for W-2 address changes. All other address changes need to be submitted to Human Resources.
Disadvantages of Getting Your W-2 by Mail
- W-2 may be misplaced or lost in the mail
- Possibility of family members or others receiving and looking at your W-2
- No ease of access
Requesting duplicate W-2 Forms
Employees must contact the Payroll department to request duplicate W-2 forms. It may take up to four weeks to process requests for duplicate W-2 forms. Requests for W-2 forms prior to 2011 require proof of audit. Tax information for years prior to the year 2000 cannot be reproduced in W-2 format.
An employee who consents to receiving the W-2 Form electronically will not receive a paper copy. If an employee does not consent, Payroll will mail the W-2, using the US Postal Service, to the current address on record by January 31.
Payroll will mail the W-2, using the US Postal Service, to the current address on record of those employees who have separated from Winston-Salem State University.
The Payroll Department offers and processes a variety of voluntary payroll deductions for permanent employees. Some of these deductions are "tax deferred" which means the WSSU Payroll department will not deduct federal and state taxes. Some deductions are "pre-tax" which means they are exempt from FICA/Medicare tax as well as federal and state taxes.
Voluntary deductions include the cost of benefits coverage that you elect to have, such as health insurance, dental insurance, supplemental retirement programs, and charitable contributions. Voluntary deductions are available depending upon your employment status.
Please contact Human Resources for more information and a complete list of voluntary deductions.