PAYROLL DEDUCTIONS

The following is a list of deductions that either must or may be taken through the payroll process.

Taxes

1.        F.I.C.A. (SOCIAL SECURITY/MEDICARE) - The University makes payroll deductions as required by law. The University, as an employer, is required to match employee contributions and to forward the combined amount to the appropriate governmental agency in the employee's name.

2.        FEDERAL INCOME TAX is deducted on a regular basis. The amount withheld and forwarded to the Internal Revenue Service is based on the number of exemptions a staff member claimed on the withholding exemption certificate filed at the time of employment or as changed by the staff member subsequent to employment. The rate of withholding is determined from tables published by the Internal Revenue Service and is based on the gross amount of payment due to an employee on a specific pay date.

3.        STATE WITHHOLDING TAX is deducted in accordance with the taxing rate established by the state in which the employee works. A separate withholding exemption certificate must be placed on file through the office of human resources.

4.        CITY OF DAYTON PAYROLL TAX is automatically deducted from payroll checks received by staff members who regularly perform services for the University within the Dayton city limits. No deductions are taken from staff members who reside outside of the Dayton city limits and whose services are performed at WPAFB or other facilities outside the Dayton city limits.

5.        SCHOOL DISTRICT TAX is deducted from payroll checks of employees who reside in school districts that have passed School District Income Tax (SDIT).

6.        TAX ON LIFE INSURANCE - Employer paid life insurance over $50,000 is considered by the IRS as a taxable benefit. The IRS provides a table based on age, to dictate the cost per $1,000 of coverage per month, regardless of the actual premium amount the University pays for the insurance benefit. The University is required to report this cost as income to the employee and withhold the appropriate taxes.

7.        TAX ON GRADUATE TUITION REMISSION - Tuition remission for graduate classes for children or spouse is a taxable benefit and the appropriate social security, federal, state and city taxes will be withheld on the benefit. Tuition remission for graduate classes for employees may also be a taxable benefit. Tax determination forms are available in the office of human resources and must be completed for each graduate level class taken by an employee. Appropriate taxes may be withheld depending upon the determination of taxability.

8.        TAX ON BASKETBALL TICKETS - The value of the discount in excess of 20% is a taxable benefit and the appropriate federal and state tax will be withheld.

Other Deductions

1.        LOAN REPAYMENT - University loans only

2.        HEALTH CARE AND DENTAL INSURANCE

3.        RETIREMENT - TIAA-CREF Group Retirement Annuity (pre-tax or after tax).

4.        TAX DEFERRED ANNUITY SAVINGS PROGRAMS

a.        TIAA-CREF (gSRA)

b.        Fidelity

c.        Lincoln National

5.        UNITED WAY - As a member of the Dayton community the University provides staff members with the opportunity of contributing to the annual campaign of the United Way through payroll deduction. Once per year, normally the fall, designated staff members of the University family assist in the University-wide solicitation and have pledge cards and payroll deduction cards available so that pledges can be paid via payroll deductions.

6.        UNIVERSITY ANNUAL SUPPORT - Staff members have an opportunity through payroll deduction to contribute to the various fundraising drives sponsored by the University for its continued development.

7.        DAY AIR FEDERAL CREDIT UNION, INC.

8.        LONG TERM DISABILITY INSURANCE - TIAA at 60% level

9.        FLEXIBLE SPENDING ACCOUNTS - Dependent care and medical.

10.     PARKING – See Page 66 for more information about parking procedure.

11.     ATHLETIC TICKETS

12.     CULTURAL WORKS - As a member of the Dayton community the University provides staff members with the opportunity of contributing to the annual campaign of Cultural Works.

13.     SUPPLEMENTAL, DEPENDENT, AND ACCIDENTAL DEATH AND DISMEMBERMENT LIFE INSURANCE – MetLife.

14.     LONG TERM CARE INSURANCE - CNA