Social Security and Medicare Taxes
The Federal Insurance Contributions Act (FICA) is made up of two items, Social Security and Medicare taxes. For 2023, the Social Security tax rate is 6.2% on the first $160,200 wages paid. The Medicare tax rate (HI) will be 1.45% on the first $200,000 and 2.35% above $200,000.
The Social Security Administration (SSA) uses the Social Security Number plus the first 7 characters of the employees last name on the Form W-2 to post Social Security Wages to a workers Social Security earnings record. Please make sure that the information you provide Pace University and the SSA is correct and current. All tax forms should have a valid social security number listed. If you change your name on your social security card please present your new card to the Human Resources Department so they can change your records to the correct name.
Federal regulations require withholding FICA taxes from all employee wages payments; however, there are exceptions.
Contact the payroll department at (914) 923-2898 or payroll@pace.edu for additional information.
In addition to Social Security Taxes (FICA and Medicare taxes) there are two other taxes:
- Federal Income Tax (FIT)- This is federal income tax that Pace is required to withhold on all earnings that are not exempt under a tax treaty. Specific forms and requirements are applicable for exemptions. Different rules apply to Non-Resident Alien's and Resident Alien's.
- State Income Tax (SIT) - New York State
Tax Forms:
- 1042S Form, Foreign Person U.S. Source Income Subject to withholding: You would receive this form from payroll if you have wages, taxable compensation paid via payroll that is exempt from taxes under a U.S. tax treaty
- W-2 Form, Wage and Tax Statement: Current and former employees will receive a Form W-2. Any employee/former employee that has wages earned that are not exempt under a tax treaty will also receive a form W-2.
Supplemental Taxation Rate Withholdings
- Federal: 22%
- New York State: 11.7%
- New York City: 4.25%
- Yonkers Resident: 1.95975%
- Yonkers Non-Resident: 0.50%