Federal and States Withholding
W-4 and NC-4 Forms
All employees should fill-out a W-4 form and NC-4 form for federal and state withholding taxes. These are available in the Human Resources Department and in the Payroll Office in Phillips Hall. If no W-4/NC-4 is on hand in time for payroll processing, then the required assumption is that the employee is single with no exemptions.
Employees must file an amended Form W-4 and NC-4 if their filing status, exemption allowances or exempt status has changed since the last filing of their withholding forms.
While the staff in the Payroll Office can assist you with identifying all the required boxes on the W-4 and NC-4 forms, they cannot give you tax advice. Please consult with a professional tax advisor regarding your particular tax situation. You may also consult Federal Publication 505 for information on Federal Tax Withholding as well as the IRS Online Withholding Tax Calculator.
Here are some sample W-4 and NC-4EZ forms along with instructions to show you the correct way to fill them out.
If Claiming “Exempt” from Federal and/or State Withholding
If you claim “exempt” on either your Federal or State Withholding forms, no withholding taxes will be deducted from your pay.
You can claim exemption from Federal withholding if both of the following situations apply to you:
- For the previous calendar year you had a right to a refund of all federal income tax withheld because you had no tax liability, and
- This year you expect a refund of all federal income tax withheld because you expect to have no tax liability
Please consult the IRS chart for exemption from withholding on Form W-4.
You can claim exemption from State withholding if you meet both of the following conditions:
- For the previous calendar year you were entitled to a refund of all state income tax withheld because you had no tax liability, and
- This year you expect a refund of all state income tax withheld because you expect to have no tax liability
Additionally, you can claim exemption from State withholding if you can certify that you are exempt from North Carolina withholding because you meet the requirements of the Military Spouses Residency Relief Act.
Employees claiming “exempt” from withholding on their Forms W-4 and/or NC-4 must complete new forms each year by February 15th in order to keep their exempt status. Employees that do not submit new forms by the deadline will be processed as single with zero withholding allowances.
Deductions Not Subject to Federal and State Withholding
Certain deductions are not subject to Federal and State Withholding taxes. Retirement contributions (TSERS and ORP), medical insurance deductions, NC Flex deductions, university parking fees, and supplemental retirement deductions (401k, 403b, 457 Plans) are tax deferred (not subject to federal or state withholding).
FICA and Medicare Taxes
The Federal Insurance Contributions Act (FICA) provides for a system of old-age, survivors, disability, and hospital insurance. The 2018 FICA tax rate is 6.2% for the employee and 6.2% for the employer up to the wage base limit of $128,400. The current Medicare tax rate is 1.45% for both the employee and employer. There is no wage base limit for Medicare tax.
Deductions Not Subject to FICA and Medicare
Certain deductions are not subject to FICA and Medicare taxes. Medical insurance deductions, NC Flex deductions, and University parking fees are not subject to FICA and Medicare taxes.
Student FICA Exemption
Undergraduate student employees who are enrolled at least half-time (6 credit hours in the fall and spring semesters or 3 credit hours in the summer session) are exempt from FICA taxes. However, any student who is also a full-time employee of the University is not exempt from paying FICA tax. In this situation, the individual’s major function is deemed to be that of a full-time employee, and as such, they do not qualify for the student FICA exemption.
Paper W-2 forms (for employees who have not given consent to receive them electronically) will be mailed by the last day of January to the address that is in the payroll system. Please check the address on your paycheck or notice of direct deposit to make sure that it is correct.
Requesting Duplicate W-2 Forms
Current employees no longer need to request a duplicate W-2 form as these are available online. Access to 2010 W-2s as well as all subsequent years are available through OnePort as long as the employee is actively employed by UNC Asheville.
Please be aware that in 2010 UNC Asheville transitioned from one payroll system to another and that the 2010 W-2 that is online only represents the earnings for 2010 that were on the Banner Payroll system. You might need an additional W-2 for the part of the year that you were paid from Central Payroll in Raleigh. Contact the Payroll Department for further information.
Employees who have separated from UNC Asheville will have to request duplicate W-2 forms from the Payroll Office. Requests should be send to firstname.lastname@example.org. Include your full name, Employee (Banner) ID number or the last four digits of your Social Security number, your date of birth, the year(s) of the W-2 needed, and your current mailing address.
It may take up to a week to process requests for duplicate W-2 forms. Tax information for years prior to the year 2000 cannot be reproduced in W-2 format.
For security reasons, we cannot fax or email W-2s. They can either be picked up in the University Payroll Office with proper identification or they can be mailed via the US Postal Service.