Federal and State Income Tax Withholding
The amount of Federal and State withholding taxes you pay is based on the information you provide on your W-4 and NC-4 withholding certificates and the amount of your taxable earnings.
Taxable Earnings is the portion of your gross earnings that is subject to being taxed.
Federal and state taxable earnings are the total salary plus non-wage compensation, reduced by "pre-tax" deductions for dental, health and vision insurance, Accidental Death & Dismemberment (AD&D), dependent care &flexible medical savings accounts, supplemental medical plan, pre-taxed parking, retirement contributions and annuity payments (403b, 401k, and 457 Deferred Compensation).
Once your Federal and State taxable earnings are determined, the taxes are calculated using the Annualized Tax Method (pdf).
All employees default to Martial Status = single with zero personal allowances when they are hired. If you wish to change your Martial Status and/or amount of personal allowances claimed you can review and change this information through MyPack Portal.
Go into Employee Self Service, Payroll and Compensation, NC4/W4 Tax application.
