Information:
W-2s
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Consult with a licensed tax professional for any tax-related questions, we are NOT allowed to give tax advice.
How are taxes calculated on my bi-weekly check?
When you receive a bi-weekly paycheck, your “Take-Home Pay” (Net Pay) is what remains after the government takes a portion to cover your estimated annual tax liability. This process is called withholding.
The Three Main Layers of Taxes
Your paycheck is typically subject to three different types of tax deductions:
- Federal Income Tax: Calculated using a “progressive” system where your income is divided into brackets. Higher portions of your income may be taxed at higher rates.
- State & Local Taxes: Depending on where you live or work, a percentage is deducted based on state-specific laws.
- FICA (Social Security & Medicare): These are flat-rate payroll taxes. Most employees pay 6.2% for Social Security (up to a certain income cap) and 1.45% for Medicare.
Factors That Change Your Calculation
Your bi-weekly tax amount isn’t just based on your salary; it depends on the information you provided on your Form W-4:
- Filing Status: Filing as Single, Married, or Head of Household changes the amount of withholdings
- Residency Status: Tax rate may differ for residents or non-residents (common for international students).
- Adjustments & Credits: If an employee has dependents (children) or other jobs, these factors will affect how much tax is taken out of each paycheck.
Paycheck withholding: What it means at tax time
Think of bi-weekly withholding as a “down payment” on your annual tax bill.
- If you overpay: You will receive a tax refund after filing your annual report.
- If you underpay: You will owe the IRS the remaining balance at the end of the year.
Pro Tip: Use the IRS Tax Withholding Estimator to estimate federal income tax withholdings.
Benefits of Receiving Form W-2 Electronically
- Eliminates the risk of W-2 information getting lost or stolen in the mail
- Eliminates delays in receiving the information due to the postal mailing process
- Secure access to your W-2 at any time
Where to access your W-2 Statement?
Login to My ADP using your User ID and password you created when you registered with ADP W-2 Services.
How to Access and Receive Your W-2 Electronically
Creating an ADP Account Instructions
What Are W-2 and 1042-S Forms?
A Form W-2 (Wage and Tax Statement) is a document that Boise State University is required by the IRS to provide to every employee. It summarizes total earnings (compensation) and the taxes withheld from paychecks over the course of the calendar year. Use this form to complete and file annual federal and state tax returns.
What is a 1042-S Form?
The 1042-S Form is specifically for Foreign National employees (such as international students or scholars) who received payments that were subject to tax treaty claims or specific withholding requirements for non-residents.
Important Deadlines
Per Federal Treasury Regulations, these forms must be “furnished” (properly addressed and postmarked or made available electronically) by the following dates:
| Form Type | Recipient | Deadline |
|---|---|---|
| W-2 Form | All Employees | January 31st* |
| 1042-S Form | Foreign National Employees | March 15th |
*If Jan. 31 falls on a weekend, the deadline moves to the next business day.
I didn’t have any Federal or State Taxes Reported on my W-2, why?
You would not have had any federal and state withholdings taxes reported if you claimed an exemption from withholding on your W-4 form for the year. In addition, the university is on a bi-weekly pay schedule, and if your earnings are under a certain threshold for a pay period, you may not have been subject to any federal or state withholding taxes. We recommend reviewing your tax information on each pay date. You can change your Employee’s Withholding Allowance Certificate (W-4) at any time.
I am a nonresident alien on a treaty; will I get another form in addition to my W-2?
Nonresident aliens, who qualify for a treaty exemption and have completed the necessary paperwork, will receive a Form 1042-S showing their treaty-exempt earnings. Form 1042-S is required before you can complete your income tax return.
Why are there no Social Security or Medicare taxes on my W-2?
Social Security and Medicare taxes (collectively known as FICA) are usually mandatory. However, under the Internal Revenue Code, many students at Boise State qualify for a specific exemption.
If these taxes were not withheld from your pay, you likely fall into one of the following two categories:
The “Student FICA Exception”
(Internal Revenue Code Section 3121(b)(10)) This is the most common reason for student employees. You are exempt from FICA taxes if you meet the following criteria:
- Enrollment: You are enrolled and regularly attending classes at Boise State.
- Relationship: Your service is “incidental” to your education (meaning your primary relationship with the university is as a student, not a career employee).
- Credit Load: Generally, you must be enrolled at least half-time to qualify for this exemption.
The “Nonresident Alien” Exception
(Internal Revenue Code Section 3121(b)(19)) If you are an international student or scholar (Foreign National), you may be exempt from FICA taxes regardless of your credit load, provided that:
- You are a Nonresident Alien for tax purposes.
- You are in the U.S. on an F-1, J-1, M-1, or Q-1 visa.
- You are performing services that follow the primary purpose of your visa.
Important Notes:
- Summer Breaks: During summer breaks (if you are not enrolled in summer classes), the University is required to begin withholding FICA taxes from your check. You may see these taxes on your W-2 for those specific months only.
- Career Employees: This exemption does not apply to staff members who happen to take a class; it is intended for student workers.
- Future Benefits: Because you did not pay into FICA during this time, these specific earnings do not count toward your future Social Security credits.
For more information, review the Student FICA Exception.
Access Current and Previous W-2 Documents
2019-Current
Instructions on accessing current and previous W-2 via MY ADP
Note: Only the previous 4 years are available
Disclosure Notices
Tax Tips
The Name or Social Security Number is wrong on my W-2, what should I do?
Your name and social security number must match the information on your W-2. Bring your social security card and the incorrect Form W-2 to the Human Resources front desk. A corrected W-2 will be issued within 5 business days.
The wages in Box 1 or my W-2 do not match my contract. What is the problem?
The W-2 is taxable earnings and is calendar year based, Jan 1 through Dec 31. Contracts cross calendar years as they are Fiscal Year based, i.e. July 1 through June 30. Taxable earnings are calculated as follows:
Plus (+) Contract/Gross earnings paid to employee in calendar year Jan 1 – Dec 31
Minus (-) Tax deferred/Pre-tax deductions, i.e. retirement, medical & dental insurance
Plus (+) Taxable fringes, i.e. taxable moving expenses, taxable tuition
Equals(=) Taxable earnings reported in box 1 of W-2
Why are my Box 1, Box 3, and Box 5 wages different?
It is very common for your Federal Wages (Box 1) to be lower than your Social Security Wages (Box 3) and Medicare Wages (Box 5). This happens because the IRS treats certain deductions differently.
Some deductions reduce your income for all taxes, while others only reduce your income for federal and state taxes.
Deductions that reduce ALL wages (Boxes 1, 3, and 5)
If you participate in these “Section 125” pre-tax benefits, the amount you pay is subtracted from your total pay before any taxes are calculated. This makes all three boxes smaller:
- Medical & Dental Insurance premiums
- Flexible Spending Accounts (FSA), including Medical and Dependent Care
- Health Savings Account (HSA)
Deductions that reduce ONLY Federal/State wages (Box 1)
Pre-tax retirement contributions (not Roth) are considered “tax-deferred” for income tax purposes, but you still have to pay Social Security and Medicare taxes on them. Therefore, these reduce Box 1, but do not reduce Boxes 3 and 5:
- Retirement Plans: 401(k), 403(b), 457(b), ORP, and PERSI
- Commuter Benefits: Qualified parking deductions
Comparison Table
To see how a single deduction affects your W-2, use this quick-reference guide:
| Deduction Type | Reduces Box 1 (Federal/State) | Reduces Box 3 & 5 (FICA/Medicare) |
|---|---|---|
| Health/Dental Insurance | Yes | Yes |
| FSA (Health/Dependent) | Yes | Yes |
| HSA (Health Savings) | Yes | Yes |
| Retirement (PERSI/401k/etc.) | Yes | No |
| Pre-tax Parking | Yes | No |
Why is there a “QOT PREM” amount in Box 14?
If you see an amount in Box 14 labeled QOT PREM, this refers to your Qualified Overtime Premium. This is a new reporting requirement following the federal One Big Beautiful Bill Act, which allows eligible employees to deduct certain overtime earnings from their federal income tax.
What is the “No Tax on Overtime” provision?
Under Section 70202 of the new law, eligible employees may deduct the portion of qualified overtime pay that exceeds their regular rate of pay (the “half” portion of the “time-and-a-half”)
How is the “QOT PREM” calculated?
Federal law only allows the premium portion of your overtime to be deducted. This is the “half” in “time-and-a-half.”
What is Included vs. Not Included?
The IRS has strict rules on what counts as “Qualified” overtime under the Fair Labor Standards Act (FLSA):
| Included (Reported in Box 14) | NOT Included |
|---|---|
| Overtime Premium Pay: The “half” portion of time-and-a-half for hours worked over 40 in a week. | Base Pay: The first 1.0x of your hourly rate (even for overtime hours). |
| Shift Overtime Premium: The premium portion of overtime that includes a shift differential. | Holiday Pay: Pay for holidays worked or accrued is not considered FLSA overtime. |
| Comp Time Taken Premium: The premium portion (1/3 of the total) when compensatory time is taken. |
Important Limits to Remember
- Annual Cap: The deduction is capped at $12,500 for single filers and $25,000 for married couples filing jointly.
- Income Phase-out: The tax benefit begins to phase out if your Modified Adjusted Gross Income (MAGI) exceeds $150,000 ($300,000 for joint filers).
- Other Taxes Still Apply: This provision only applies to Federal Income Tax. You are still required to pay Social Security, Medicare, and any applicable State or Local taxes on these earnings.
For more details, visit the IRS website https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions