When receiving compensation wages, payments can be subject to certain deductions. As an employer, the University of California, Irvine, has the responsibility to assess and collect for the appropriate taxes from your payments. Employers who do not comply with the employment tax laws may be subject to criminal and civil sanctions for willfully failing to collect employment taxes.
Below are the most commonly found tax related deductions:
- Federal Income Tax
- State Income Tax
- OASDI (Old Age, Survivors and Disability Insurance) Tax (6.2%)
or Defined Safe Harbor Contributions (3% or 7.5%)
- Medicare Tax (1.45%)
Federal and State Income Tax Deductions
Federal Income Tax and State Income Tax Deductions are amounts deducted from your payments for federal and state income taxes. The amounts deducted represent an estimate of your income tax liability for the amount that you were paid. These amounts are reported on your Form W-2 for the calendar year end. The amount of income taxes withheld depends on the withholding allowances that are claimed on Form W-4, Employee's Withholding Allowance Certificate and Employment Development Department (EDD) Form DE-4, Employee's Withholding Certificate.
UCI employees cannot advise you on the appropriate amount of withholdings to claim, but the link below can assist with this determination.
FICA Deductions (OASDI and Medicare)
OASDI is commonly referred to as Social Security. The OASDI and Medicare deductions are also commonly known as FICA and are used to fund the U.S. Retiree program.Citizens, Permanent Residents or or Resident Aliens in a career appointment are subject to these deductions. Citizens, Permanent Residents or Resident Aliens in a non-career appointment are subject to a Defined Contribution Plan (DCP) and Medicare Care Tax Deduction.
The OASDI Tax rate is 6.2% for the first $127,200 of earnings in 2017. The Medicare Tax rate is 1.45% of earnings. An additional 0.9% is deducted for Medicare Taxes for earnings over $200,000 in a calendar year.
Students who are enrolled in 6 or more units are exempt from FICA deductions in the quarter they are paid. In order for the payroll department to properly process payments to students, the University Registrar's office must have your Social Security Number on record.
Defined Contribution Plan (DCP)
The DCP deduction is a retirement contribution into a Fidelity retirement account for your benefit. If you have any questions about this contribution, please contact Fidelity at 1-866-682-7787. You can help identify yourself with your Social Security Number. Please allow for three weeks from your first contribution for your Fidelity account to be setup.