Transcript Form W-4/MW 507 Section 1

The following information is educational information and not advice
Your personal situation will impact your decision on how to have taxes
withheld
If you have a hard time making this decision consider consulting a
professional
Basic examples and explanations from the Internal Revenue Service
are provided
For more information, see Understanding Taxes – Students.
Form W-4/MW 507
You complete this form which Payroll uses to know
how much tax to withhold each time you’re paid.
Form W-4/MW 507
Tax Withholding
 What does tax withholding have to do with your paycheck?
• Your employer withholds (deducts) specific amount of money from
each paycheck based on how you complete Form W4.
• This tax money is sent to the tax agencies each time you get paid.
• The amount of money taken out of your paycheck depends on how
much money you earn and how many allowances you claim
A chart generating the amount of tax money a single person
has to pay in 2010 based on income and tax withholdings
can be found on pages 51 and 52 of the following link:
http://www.irs.gov/pub/irs-pdf/p15a.pdf . A similar chart for
married persons can be found on pages 53 and 54.
Form W-4/MW 507
TU pays every 2 weeks (bi-weekly)
Example:
 A student worker who is single and wrote “1” on line 3 on the W-4/MW 507,
makes $117.50 in a pay period.
 This earned incomes falls in the $115-$120 bracket.
 In the “1” column of the chart below, it says that $8.99 tax is to be withheld.
 Therefore, a paycheck for about $108.51 ($117.50 - $8.99) will be issued.
Section 1: Employee Information
Students are Contingent (CT) employees
1. Check off “CT” on the “Payroll system” (top) line.
2. Fill out all of the Section 1: Employee information (see below)
Please note that you must fill out your COUNTY of residence, not your country of
residence
3. After successfully filling out the form, sign and date the bottom.
x
360224
Towson University
123-45-1234
John Smith
1111 Something Street
Some City
MD
22222
Maryland county
Section 2: Federal Tax
Check Marital Status, # of Allowances or Exemption
Tips:
• Check your marital status on Line 3
• On line 5, enter the number of withholding allowances, such as “1” if you
are single with no dependents
• You can claim exemption on line 7 if you will not earn more than $3,700
in 2011
• Complete either line 5 or 7 - not both!
In the above example, the employee is single and claiming 1 allowance.
Notice how he checked off “Single” in line 3 and wrote “1” on line 5. All other
lines and boxes should be left blank.
Section 2: Federal Taxes
Example 2
A single, full time student is claiming exempt. Notice how
“Single” is checked and “Exempt” is written on line 7.
All other lines and boxes are left blank.
Form W-4/MW 507
Scenarios
George is claiming “0” because he:
→ Wants to have the MAXIMUM amount of taxes withheld from each pay.
Linda is claiming “1” because she:
→ Is claiming the personal exemption for herself now instead on her tax return.
Michelle is claiming “exempt” because she:
→ Did not owe any taxes last year.
→ Does not expect to owe any taxes this year.
→ Is a full-time student.
→ Will not earn more than $3,700 in 2011 (all jobs combined).
→ Is claimed as a dependent by her parents on their tax return.
Section 3: Maryland Tax
Section 3 is filled out in the same way as Section 2, only on different lines.
If you are a full-time student and will earn less than $9,650 in 2010
you can be exempt from state taxes.
TAX
ALLOWANCE
MARITAL
STATUS
TO CLAIM
EXEMPT
Check 2
boxes
Write EXEMPT
here
Tax Year
Form W-4/MW 507
Section 3: State Tax Withholding
Below are some examples of how Section 3 can be filled out.
For a single person who is not claiming any exemptions (i.e. claiming “0” – maximum taxes):
For a married person who is claiming one exemption (i.e. claiming “1”):
For someone who is claiming exempt:
Form W-4/MW 507
FICA Taxes
(Social Security/Medicare)
There is a student exemption for FICA tax. To qualify, a
student must:
• Be taking a minimum of 6 credit hours. Therefore, a TU
student who works at Towson University is FICA exempt if
they are registered for 6 credit hours or more!
During the summer if you are not taking 6 credit hours,
FICA tax is automatically deducted.
Getting Paid
 It takes around 4 weeks to receive your first paycheck once
you’ve completed the student hiring process.
 Your paychecks will be mailed to the address specified on
W-4/MW 507 Form.
 Pay periods end every other Friday and checks are mailed
12 days later.
 It usually takes around 2 days to receive the paycheck in
the mail.
 To receive your payment on the pay date, sign up for direct
deposit!
Direct Deposit Form
This form allows TU to deposit your earnings directly into your
checking/savings account. It is not mandatory but is strongly recommended.
1. Check off “Contract” on the “Payroll System” (top) line.
2. Complete personal information required at top.
3. If this is your first job on campus, check “1” to set up direct deposit into the
account you specify.
4. Fill in bank name and mark which type of account it is (checking or
savings).
5. Bank Number is the routing number found on bottom of a check. It is 9
digits. (It is not the number on deposit slip).
6. Write the checking or savings account number.
7. Sign and date the bottom of form.
8. Submit form to Payroll Office.
Payroll Information
Direct Deposit
It might take a few pay periods for direct deposit to activate.
Until direct deposit is setup checks will be mailed to the
address provided on W-4/MW 507 form.
If you change your direct deposit account, you will get a
check in the mail until the new account is setup.
Direct deposit is done through the Payroll Online Service
Center. The following slide provides more information.
It is important to keep your current address on file with the
Payroll Office to prevent stolen or lost checks.
Payroll Online Service Center
A secure web-access website maintained by State of Maryland Central Payroll Bureau.
POSC affords you many benefits:
• Bi-weekly pay advices for the last 12 months.
• Year-end information.
• Duplicate W2 forms for past 3 years.
• Changing your W-4/MW 507 tax withholding online.
• Updating your name and address.
• Changing bank information (i.e. what account your paycheck
will directly deposit into).
By using POSC you help save trees because CPB won’t have
to print your paychecks every 2 weeks 
Payroll Online Service Center
How to Sign Up
https://interactive.marylandtaxes.com/Extranet/cpb/POSC/User/Start.aspx
You will need:
• Your Social Security #
• Number of a check you received in last 6 months
• TU’s Agency # 360224
• To begin:
Go to http://compnet.comp.state.md.us/cpb.
Click on “POSC” icon in upper right corner of website.
Click on “Sign up.” You will need to enter your date of birth, your Social
Security number, Towson’s agency number (360224), and the check/advice
number from your most recent check.
To go paperless, click on “Signup/Modify Web access only” and check
“Yes- I want Web Access Only”
Payroll Information
Timesheet Overview
• Timesheets are due every other Friday at noon per bi-weekly
contingent schedule.
• Daily Digest which will notify you if timesheets are due early.
• Join the Student Financial Services Facebook and Twitter
communities to received important reminders!
• Refer to bi-weekly contingent payroll schedule on the Financial
Services website to stay current!
Payroll Information
Electronic Timesheets
• Timesheets are not available until the first Tuesday or Wednesday of
each pay period.
• You can access your timesheet at:
https://inside.towson.edu/Intranet/LDAPSecurity/loginPS.cfm
• Sign in using your TU NetID and password. Click on the active
timesheet that you want to update FOR EACH JOB.
• Fill in your work hours and click on “Save Entries.”
• Timesheets MUST be approved by BOTH you and your supervisor
in order to get paid.
Payroll Information
Paper Timesheets
In case of the following:
• Timesheet was not approved on time.
• You did not enter your work hours before the deadline
Submit a paper timesheet to the Payroll office (Admin. Building, 4th
floor). Fill out all of the pertinent information and get it signed by your
supervisor before bringing it to payroll.
Help Line
410-704-5599
If you ever have any questions call the Help Line at (410) 7045599 or email
[email protected]