W-4 Tax Withholding
We recommend that all employees evaluate their withholding annually to make adjustments based on changing tax rates and family dynamics. If you are unsure what to claim, please consult with a certified professional accountant. Personnel and Payroll staff cannot assist you with this calculation.
You should especially consider updating your W-4 if:
- You recently got married (or divorced);
- You recently got (or quit) a secondary job;
- Your spouse got (or quit) a secondary job;
- You had a baby (or adopted one); and/or
- You experienced the loss of a spouse or dependent child.
It’s easy to adjust your withholding electronically through Workday. From the main Workday desktop that you see upon logging in, click on the Pay worklet/app (wallet icon). Then select the Withholding Elections button, and the Update button on the following screen. From there you can easily walk through a short series of calculation questions. Performing this task annually will help ensure that you aren’t withholding too much or too little for next year’s tax bill.
You may find this tool to be helpful:
Retirement Plan Alternative (RPA)
Employee and Employer both contribute. Employee’s contribution is a pre-tax deduction. RPA is a defined contribution plan and you are 100% vested at day one. This is for faculty only.
Public Employees’ Retirement System of Nevada (PERS)
If you were a participant of PERS at any time in the past and did not withdraw from PERS you will be required to participate in PERS. PERS is a defined benefit Plan. There are two plans available to employees: FICA Alternative and Social Security (FICA).
FICA Alternative Retirement Plan (FICA-Alt)
Employee contribution is 7.5% on a pre-tax deduction and there is no employer contribution. FICA-Alt is the retirement plan for those employees who are not eligible to participate in either RPA or PERS.
Social Security (FICA)
The State of Nevada signed a 218 agreement with the Social Security Administration in 1954. Under this agreement the State of Nevada chose to opt out of FICA participation for their employees who qualify for a retirement plan. Employees who participate in any of the above mentioned retirement plans do not contribute to FICA. There is also no employer contribution to FICA. This means that while employed for the Nevada System of Higher Education (NSHE) you will not be gaining any FICA service credits from NSHE. In addition your FICA retirement amount received from Social Security could be affected by the retirement you receive from our retirement plans. This possible reduction is why you are required to sign the Federal form SSA-1945.
Newly hired employees of NSHE do participate in Medicare and will have a deduction taken with an employer match. You will receive Medicare service credit while employed for NSHE.
Non-resident aliens and students taking the minimum credit requirements are exempt from paying Medicare tax. Students not taking required credit load or who hold secondary non-student employment at NSHE are required to pay Medicare tax.