Federal Tax Guidelines

Several components determine an individual’s particular taxation such as the way the W-4 Card is completed, citizenship status, age, student enrollment status and multiple employment that results in a dual compensation situation.

In the State of Florida, there are 3 taxes that must be addressed during employment:

Social Security (6.20% of gross taxable wages up to $168,600 in 2024)
Medicare (1.45% of gross taxable wages under $200,000 and 2.35% on all gross taxable wages over $200,000)
Federal Withholding Tax (see IRS Publication 15, Employer’s Tax Guide)

Social Security and Medicare Tax

USPS, A&P, Faculty & Executive Service
Social Security and Medicare tax will be deducted from an employee’s paycheck in the amount of 7.65% based on the total taxable gross amount.

Phased Retirees
Medicare tax will be deducted from an employee’s paycheck in the amount of 1.45% based on the taxable gross amount.

OPS Non-Students (Hourly and Adjuncts)
Medicare tax will be deducted from an employee’s paycheck in the amount of 1.45% based on the total taxable gross amount. Employees in this category will also pay into the FICA Replacement Plan in the amount of 7.50%.

Graduate Student Employees
Premise:
The University provides assistantships for graduate assistants to gain research and/or teaching experience as part of their education toward a graduate degree. Graduate students are defined by having a job profile in the job family of Student Employment (OPS).

Criteria for Exemption Eligibility:

The Graduate Catalog provides definitions for determining full-time status of a graduate student. In any given term, graduate students are considered full-time when they are registered for 9 hours in Fall and Spring terms, and 6 hours in Summer terms, or 3 hours of thesis or dissertation regardless of term. Please refer to “Full-time Enrollment Policies” in the current Graduate Catalog for complete details about this topic.
In order to be exempt from FICA tax, students must be (1) enrolled in at least ½ time status at UCF, (2) regularly attending classes in the semester at UCF and (3) working as a graduate assistant at UCF.
Students must be “scheduled” to work less than 30 hours per week in order to have FICA exception. A schedule is determined by the employing department and loaded into the Workday system. If information is loaded with an incorrect schedule, this will not merit a refund of past taxes deducted.

Failure to meet the above criteria will result in the student paying Social Security (6.20%) and Medicare (1.45%) tax on the taxable gross paid for the pay period. Each department is responsible for the employer-matching portion of the tax and it will come out of the same funding department being charged for the student’s salary.

Keep in mind that graduate students are limited in the number of hours they may work by Graduate Studies. In some cases, a Supplemental Assignment Form is required. Even if the form is approved, if the student works 30 or more hours, they will become subject to FICA taxes.

Undergraduate Student Employees
Premise:
Undergraduate students are defined by having a job profile in the job family of Student Employment (OPS).

Criteria for Exemption Eligibility:

The Student Financial Assistance Employment Manual and Undergraduate Catalog provide definitions for determining full-time status of an undergraduate student. In any given term, undergraduate students are considered full-time when they are registered for 12 hours in Fall, Spring, or Summer terms. However, the IRS uses the US Department of Education’s definition of half time for undergraduates which is six hours.
In order to be exempt from FICA tax, students must be (1) enrolled in at least ½ time status at UCF, (2) regularly attending classes in the semester at UCF and (3) working as a student assistant at UCF.
Students must be “scheduled” to work less than 30 hours per week in order to have FICA exception. A schedule is determined by the employing department and loaded into the Workday system. If information is loaded with an incorrect schedule, this will not merit a refund of past taxes deducted.

**Special Notice Regarding Students**
In 2004 and 2005, changes in FICA exception for students were made by the Internal Revenue Service. Below are some links for specific information directly from the IRS:

Treasury Decision 9167: Final regulations published December 21, 2004.
Revenue Procedure 2005-11: Safe harbor standards that colleges and universities can apply in determining if an employee is eligible for the student FICA exception.
Background Information: Background information on the final regulations and revenue procedure providing guidance on the student FICA exception (section 3121(b)(10) of the Internal Revenue Code).

Federal Withholding Tax

All Employees
All employees are subject to federal withholding tax based on the way the W-4 Card is completed. Factors on this card that determine the amount of tax are Marital Status, Number of Withholding Allowances, any Additional Amount Claimed and if the Exemption Box is completed or not.

*Please note: UCF does not withhold state income tax. Employees paying taxes in another state need to contact their local or state revenue office to make payment arrangements.

In order to determine the correct amount of federal withholding tax that will be deducted from each paycheck, please visit the Internal Revenue Service (IRS) website and review Publication 15, Circular E, Employer’s Tax Guide, for bi-weekly tax tables.

One exception allowed for not paying federal withholding tax relates to employees who are from a country which shares a tax treaty with the United States. Certain conditions must be met and UCF, as the withholding agent, reserves the right to deny a tax treaty benefit based on information obtained. For more information, please visit the Non-Resident Alien Employment page.

The second exception allowed is when an employee claims exemption from withholding and certifies that he or she has met all of the conditions for exemption stated on the W-4 Form. Exemption from withholding in this manner expires on February 16th of the following calendar year from which the form was signed.