EMPLOYEE WITHHOLDING ALLOWANCE CERTIFICATE W-4
The University of Nebraska is required to withhold federal and state taxes from certain employee wages, using pre-defined IRS and Nebraska State Income Tax withholding tables.

Each employee must complete a W-4 form when beginning work at UNL. If an employee does not complete the W-4 form, federal and state taxes will be withheld using the single status and zero withholding allowances. UNL will not refund any taxes that were withheld due to an employee's neglect to complete the W-4 form. To make changes to your W-4 allowances contact your department Payroll Clerk or the UNL City Campus Payroll Office.

To determine the correct number of allowances you should claim on your W-4, complete the Personal Allowances Worksheet provided by the IRS.

IRS Personal Allowances Worksheet

UNL must submit a copy of an employee's W-4 form to the Internal Revenue Service if the employee claims more than ten (10) withholding allowances or claims to be exempt from withholding.

A W-4 remains in effect until an employee submits a new one except in the case where an employee claimed to be exempt. An exempt employee must complete a new W-4 each calendar year. See further details regarding exempt status below.

If an employee is to receive an award payment or additional pay i.e. overload pay, summer research, summer teaching it is the responsibility of the department to notify the employee that he/she may want to change his/her W-4 withholding status in order to prevent over taxation due to the additional income. An employee may request the Payroll Office to provide him/her with a tax projection analysis worksheet based on the various exemptions.

EXEMPTION FROM INCOME TAX WITHHOLDING
The W-4 for an employee who has indicated that he/she is exempt from withholding expires on February 15th of each calendar year. The UNL Payroll Office will send a letter of notification in late January of each calendar year to employees who have completed their W-4's indicating that they are exempt from withholding. If the employee qualifies and wishes to continue being exempt from federal income tax withholding, the employee must complete a new W-4 and submit it the Payroll Office by the deadline indicated in the letter. To determine if you are eligible to claim exempt on your W-4, see the Exemption from Withholding section of IRS Publication 515.

Nebraska follows federal rules for determining the number of allowances to claim for NE state tax withholding purposes.

Nebraska Dept of Revenue State Income Tax

• Not claim exemption from income tax withholding
• Request withholding as if they are single, regardless of their actual marital status
• Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, Japan or Korea, he/she may claim more than one allowance)
• Request an additional income tax withholding amount, depending on the pay cycle in which they are paid:

Biweekly	$15.30 per pay period
Monthly	$33.10 per month

• For personal services income

   

  • Use form 8233 and the Tax Treaty Statement if the individual is a student, a teacher or researcher. Form 8233 and the Tax Treaty Statement expires at the end of each calendar year. The UNL Payroll Office will notify the nonresident alien that he/she must complete a new form each year. The nonresident alien is responsible for completing the form and returning it to the Payroll Office prior to the deadline indicated in the letter. If the nonresident fails to complete the proper forms each years, he/she will not be given treaty benefits until such time that the new treaty forms are completed.

   

  • Use form W-9 and Attachment to form W-9 if the foreign individual is a resident alien for tax purposes. This form is valid indefinitely until the individual’s circumstances change where the information reported is no longer valid. ie. the resident alien becomes a “green card” holder or citizen, or treaty time limits run out.

    Use form W-8BEN for scholarship/fellowship grants and royalty income if the foreign individual is a nonresident alien for tax purposes. This form is valid as long as the individual is eligible for treaty benefits and the individual receives a tax reportable payment at least once per year.

   

  • Use form W-9 and Attachment to form W-9 if the individual is the foreign individual is a resident alien for tax purposes. This form is valid indefinitely until the individual’s circumstances change where the information reported is no longer valid. ie. resident alien becomes a “green card” holder, a citizen or treaty time limits run out.

NONRESIDENT & RESIDENT ALIEN SOCIAL SECURITY NUMBER/ TAXPAYER IDENTIFICATION NUMBER (TIN) REQUIREMENT

Effective for payments made on or after January 1, 2001, any tax treaty claim made on forms 8233 or W-8BEN which do not contain a social security number or a permanent U. S. Taxpayer Identification number cannot be accepted.

A permanent TIN is:

• Social Security Number (SSN) – Used for employees, independent contractor and scholarship/fellowship recipients

• Individual Taxpayer Identification Number (ITIN) – Used for independent contractor and some scholarship/fellowship recipients

Slugo – Tax Treaty Table and Tax Treaty Statements

Slugo – 8233 Form

Slugo – W-9Link to Slugo – W-8BEN

IRS Publication 901

IRS Tax Treaty Information

• Undergraduate and graduate students who meet the tests defined in IRS revenue procedure 98-16 and UNL Policy for being enrolled and regularly attending classes during the academic semester in which they are employed will be exempt from FICA withholding on University wages. The tem “student” refers to undergraduate or graduate

• Nonresident aliens who hold F-1, J-1, M-1 or Q-1 visas and who are performing employment that is consistent with the provisions of their visa status; and do not meet the substantial presence test (SPT) which is 5 years for students and 2 years for teacher/researcher.

In accordance with federal tax laws, the University of Nebraska shall grant an exemption from social security (FICA) tax withholding on wages paid to a student during an academic semester or summer session in which the student is enrolled and regularly attending classes. A student will be deemed to be enrolled and regularly attending classes if he/she is enrolled at least half-time, i.e. 50% of the minimum number of hours required for full-time enrollment certification purposes. Minimum exemption thresholds are:

• Undergraduate Students:

  
  

  Fall, Spring Semesters	six (6) credit hours per semester
  All Summer Sessions Combined	six (6) credit hours

• Graduate Students:

Between Semesters:

Students who are enrolled and regularly attending classes in a given academic semester/session will be entitled to the exemption from FICA tax withholding for any brief period of time between the end of one semester/session and the start of the succeeding semester/session if they qualified for the exemption in the immediately preceding semester/session. For example, a student who is enrolled during the second summer session would retain the exemption during the period between the end of the second summer session and the start of the fall semester and also during Christmas break.

In all circumstances, it is the responsibility of the student worker to register, maintain his/her student status and complete any required forms to be eligible for FICA exempt status. If a student fails to maintain exempt status during the fall and spring semester or summer sessions by dropping credit hours or terminating his/her student status, all of the wages paid to him/her during that period shall be FICA taxable. The FICA tax will be due immediately. The student or former student will have fifteen working days to remit the payment due to the UNL Payroll Office.

Full-Time Employees:

All non-student and/or full-time employees will not be eligible for the student FICA exemption.

IRS Student FICA guidelines -Social Security Administration