17.18 Withholding from Payroll Checks

(Regents 3/9/72; amended 9/93; 7/08; 3/12)

General Guidelines. Payroll withholding programs are permitted according to the following guidelines:

  1. Withholdings authorized by federal or state laws.
  2. Withholdings in connection with staff member retirement and insurance plans approved by the Board of Regents, State of Iowa.
  3. Withholdings authorized by individual staff member for institution-wide contributive programs of direct benefit to the institution.
  4. Withholdings authorized by individual staff members for United States Savings Bonds.
  5. Withholdings for amounts due the institution from and authorized by its staff members or for amounts clearly established to be due from its staff members.
  6. Withholdings for amounts authorized by individual staff members for dues for the convenience of organizations which relate to employment conditions such as union organizations or University-wide professional organizations. Payroll withholding programs in this category shall not be initiated without one hundred participants unless justification exists for less than one hundred participants; payroll programs in this category may be discontinued if the number of participants falls below twenty-five. Each payroll withholding program in this category is to be submitted to the Board of Regents, State of Iowa, for approval. Any payroll withholding program may be discontinued by the Board of Regents, State of Iowa, if a request for a new withholding program has higher priority and cannot be accommodated within existing withholding procedures.
  7. Withholdings for amounts authorized by individual staff members for contribution to qualifying charitable organizations. In order to qualify for payroll withholding privileges, an organization must: 1) be eligible to receive contributions which may be deducted on the contributor's Iowa individual income tax return and, 2) have one hundred (100) or more participants within the University.

    Any staff member wishing to terminate this deduction shall be required to give 30 days' notice in writing to the University Payroll Office.

    Each Regents institution will require the staff member of eligible organization to submit written authorization for payroll withholding for each withholding program.

    The Business Officers are required to maintain such records as necessary for audit purposes.

17.18(1) Federal Income Tax Withholding

(Amended 7/08)
  1. General Policy. As required by the Internal Revenue Code, the Payroll Office deducts and withholds federal income tax from salaries and wages of University staff. Deductions are made in accordance with rules established by the Internal Revenue Service.

    Amounts in excess of those stipulated by the Internal Revenue Service may be withheld at the request of a University staff member. Amounts deducted and withheld are remitted to the Director of Internal Revenue.
  2. Federal Withholding Receipts. The Payroll Office is required to issue each year to all staff members a withholding receipt (Federal Form W-2) showing the total amount of salary or wages paid and the amount of federal income tax withheld. A copy of this receipt is sent to the Director of Internal Revenue. This receipt includes all payroll checks distributed during the calendar year under report. Therefore, the regular payroll checks available on January 2 are reported as applying to the calendar year beginning with January rather than to the period for which the salary or wage is being paid. W-2 forms normally are available to staff members in January of each year.

17.18(2) State Income Tax Withholding

As required by the Code of the State of Iowa, the Payroll Office deducts and withholds state income tax from salaries and wages of University staff members. Deductions are made on a monthly payroll basis in accordance with rules established by the State Revenue Department.

17.18(3) U.S. Savings Bonds Withholding

(Regents 3/9/72; amended 9/93; 7/08; 3/12)

Employees will use UI Employee Self Service to initiate payroll deductions for TreasuryDirect. Deductions will begin upon receipt of the employee's TreasuryDirect account number and monthly deduction amount. This amount will be transmitted to the employee's TreasuryDirect account (www.treasurydirect.gov) on a monthly basis. Deductions may be canceled at any time by using Employee Self Service.

17.18(4) United Fund Withholding

See V-9 Fund Solicitation Policy.

17.18(5) (Reserved for future use)

17.18(6) Tax Shelter Provision

(Regents 10/12/63)

Staff members defer federal and state income taxes on contributions to TIAA or an approved substitute annuity or supplemental annuity. An individual eligible for TIAA takes a salary reduction in an amount equal to the staff member's contribution to the retirement fund. That amount, plus the University's contribution is paid by the University in the staff member's name into the retirement fund; an income tax on the total annual contribution is postponed until the time benefits from the plan are received. Internal Revenue Service regulations have maximum contribution limits under this program. Contact the University Benefits Office for further information.