Appropriate Federal and State Income Tax Withholding Calculations

Human Resources and Financial and Business Services have reviewed off-cycle pay system defaults to ensure appropriate federal and state income tax withholding calculations. Please be advised that off cycle payroll checks are treated as an addition to regular cycle payroll checks within the pay period, with income taxes allocated to the separate payments as if they were a single payment. This is called “aggregate taxation.” If an employee wishes to adjust his/her employee withholding allowance certificate, Form W-4, this can be completed before the supplemental pay is prepared via the Campus Information System Employee tab. For example, if the employee wishes to decrease payroll income tax withholding for a certain pay period, the employee would increase the Form W-4 allowances.

In the alternative, an employee or the employer can elect flat rate withholding for an off cycle paycheck. The flat tax withholding rate is currently 30% total, 25% for federal and 5% for Utah.

Due to review of the appropriate pay system defaults and a new tax table effective January 1, 2009, you may see changes to income tax withholdings for employee pay.

If you have further questions, please Ask Us.