There are four taxes that all employees are subject to:
- Federal and State withholding taxes
- Social Security and Medicare taxes (FICA)
Federal and State Withholding Taxes
The amount of Federal and State withholding taxes you pay is based on the information you provide on your W-4 and NC-4 withholding certificates. If you do not provide this information, taxes will be calculated on the basis of martial status = single with zero personal allowances claimed. All current employees can review and change their Federal and State tax withholding by accessing the MyPack Portal> Employee Self Service> Payroll and Compensation> NC4/W4 Tax application.
Student FICA Exemption
The IRS provides a special exemption for students that work on campus commonly known as the student exemption to FICA tax. It states that FICA (Social Security & Medicare) taxes do not apply to service performed by students employed by a school, college or university where the student is pursuing a course of study. North Carolina State University has interpreted this regulation to mean that a student must work less than 30 hours per week and be enrolled at least ½ time – 6 hours for undergraduate students and 3 hours for graduate students during the fall and spring semesters and 3 hours for undergraduates and 1 hour for graduates during the summer semester. If you do not meet BOTH of these criteria, Social Security and Medicare taxes will be withheld from your paycheck.
Important information about FICA exempt wages earned as a student on campus:
- The wages will not be included in wage calculation if and when you apply for unemployment benefits.
- The wages are not reported as Social Security wages and will not be included in any wage calculation for Social Security or Disability benefits.
Bi-Weekly FICA Tax Exempt Schedule