Exclamation point iconSee the the Tax Cuts and Jobs Act page for information on the redesigned 2020 Form W-4.

A tax is a levy imposed upon an individual by the federal or state government to fund public expenditures. A failure to pay taxes is usually punishable by law.

Types of Taxes

Federal Income Taxes

Federal income taxes levied by the IRS on the annual earnings of an individual.

Ball State uses the federal Form W-4 to calculate federal taxes on each paycheck.

For assistance completing or updating your W-4, please use the IRS Withholding Calculator.

Federal Taxes are reported annually on Form W-2.  What's new on Form W-2 for 2020?  

  • Box 14 will now include informational details, if applicable, about amounts paid to you as qualified sick leave wages (emergency paid sick leave act “EPSLA” in line 14E) or qualified family leave wages (Emergency Family and Medical Leave Expansion Act “EFMLEA” in line 14F) under the Families First Coronavirus Response Act as required by the Internal Revenue Service.
  • If you have self-employment income in addition to wages paid by Ball State University, and you intend to claim any qualified sick leave or qualified family leave equivalent credits, you must report the qualified sick leave or qualified family leave wages on Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, included with your income tax return and reduce (but not below zero) any qualified sick leave or qualified family leave equivalent credits by the amount of these qualified leave wages. If you have self-employment income, you should refer to the instructions for your individual income tax return for more information.

 

State and local taxes vary by state. Ball State uses the Indiana WH-4 to calculate your Indiana state and local taxes on each paycheck.

If you live or work outside of Indiana, please see below.

Social Security and Medicare (also known as FICA) are required to be withheld on all employees unless they meet the student or nonresident alien exemption for FICA taxes.

FICA Tax Rates for 2023

Old Age, Survivor, and Disability Insurance and Supplemental Security Income

  • Social Security = 6.2 percent of taxable wages up to a limit of $160,200
  • Medicare = 1.45 percent of taxable wages with no limit
  • Additional Medicare = 0.9 percent of taxable wages over $200,000 See a full list of rates and limits.