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Employees are taxed at the same rates as withholding rates on regular pay (see below):
| Rate | Withholding Item | 10-38% | Federal | 7.65% | FICA/Medicare | 3.07% | State | 1-3% | Local (depends on where employee lives) |
|---|
The taxable allowance will appear on the paystub as a separate line under "Gross Pay" and again below another entry called "Taxable Benefits" under "Employee Deductions/Reductions." Employees should contact the Payroll office via phone at 814-865-7621 or via e-mail at payroll@psu.edu if they have specific questions about withholding rates or paystubs.
Send an e-mail to your Financial Advisor and Angie Auman requesting the cancellation with the effective date. Angie will contact Payroll to make sure they discontinue taxing the allowance amount and she'll remove the allowance from the monthly processing. Angie will notify the employee and the Financial Advisor when this has happened.
