Manage Your Taxes and Tax Elections

Miami University Payroll Office withholds federal, and local state income tax according to federal and state tax laws, and university policy. Your income tax calculations are based on federal and state withholding certificates you have completed. Employee must also review their Workday home and work addresses and ensure that they are current and correct as these will be used to determine a proper taxation.

You must complete the Federal Tax Withholding Certificate in Workday so that the correct amount of federal tax is withheld from your wages based on following information:

• marital status ( Step 1c)
• you have multiple Jobs or your spouse work (Step 2)
• number of dependents you claim on the form ( children under Age 17 or other dependents) (Step 3)

You can also request additional adjustments to your tax withholdings if you would like have an addition tax withheld from your paycheck. For this purpose, you can specify the amount of your other income (Step 4b) or request additional withholdings per pay cycle (Step 4c).

When preparing your tax withholding forms, you may want to review (IRS form W4) instruction or consult a tax professional to ensure all information is accurate.

Changes to tax withholding elections are effective immediately, unless a future effective date is selected.

Miami University is a registered employer in the State of Ohio and a number of other states and their local taxing jurisdictions. Most states and their local jurisdictions have unique tax laws with which Miami University must comply. To that measure, Miami withholds from employees, including student workers, all applicable state and local income taxes. All employees are required to complete an appropriate state withholding certificate in Workday.

Miami University must withhold Ohio income tax from any wages the employee earns while working in Ohio, even if the employee lives in another state. Ohio has reciprocity agreements with the five states that border Ohio:  Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia.

Employees residing outside of Ohio but actively working on a Miami Ohio campuses may claim an exemption from withholding of Ohio income tax. To activate the Ohio state income tax exemption, employees must complete both: a state residency tax withholding certificate as well as the Ohio state withholding certificate. This is needed in order to avoid double taxation in the state of residency and the state where work is performed (Ohio). When completing your Ohio certificate in Workday, please check the box indicating that you are the resident of reciprocal state.

Employee must review their Workday home and work addresses and ensure that they are current and correct; the Payroll office uses both of these addresses to determine what state and local income tax is required to be withheld. Home address is also used for taxation of employees working remotely under a flexible work arrangement and for a local taxes such as school district tax or other mandatory taxes.

Please note that failure to update addresses in a timely manner may lead to erroneous withholdings. The Payroll Office will not correct records due to employee negligence, and employees will be responsible for any additional tax filings resulting from their own oversights. Your cooperation is greatly appreciated in maintaining the integrity of our records.

If a Miami employee retires or becomes disabled, the employee may receive a pension based on earnings from their job at Miami. If an employee does receive a pension and is entitled to a benefit from Social Security based on either their own work or the work of their spouse (or a former spouse), the pension through the job at Miami may affect the amount of the Social Security benefit received. This is part of the windfall elimination and government pension offset provisions. The employee’s Medicare benefits, however, will not be affected.

The United States Congress passed legislation to extend the Medicare health care insurance program to all employees not covered by Social Security who are employed on or after April 1, 1986. Since employees of Miami University are not covered by Social Security, all new employees hired on or after April 1, 1986, must pay a Medicare tax equal to 1.45% of their gross salary, and Miami University must make a matching contribution.