Carnegie Mellon University

Payroll Taxes

To make changes to tax elections or to view current elections, employees can navigate in Workday to Pay > Manage My Tax Elections. For more information and full instructions for viewing/changing tax withholdings, view the Electronic Tax Forms Quick Guide [pdf].

All faculty, staff and students paid through Workday must update their tax forms when they are hired or if they have a change to their tax withholdings.

The university does not accept paper copies for federal withholding, state withholding elections, and local tax residency forms.

Workday will withhold both the resident and work states until the employee completes the proper forms.

If you work in Pennsylvania and wish to stop Pennsylvania withholding due to your primary residence being in a reciprocal state, complete the PA-REV 419 form, which can be accessed in Workday under Pay > Manage My Tax Elections. For full instructions on accessing/completing the PA-REV 419 form, view the Electronic Tax Forms Quick Guide [pdf]. Scan and submit the completed form to the HR Service Center.

Payroll will not refund the additional taxes withheld in a prior pay. Employees can obtain a refund when filing their tax return or by contacting their personal tax advisor for assistance.

Staff and Faculty

Staff and faculty can view and update addresses in Workday under Personal Information > Contact Information. A primary address is used for calculating pay and taxes and is where documents will be mailed. Employees may identify an additional address, or mailing address, in Workday, which will be used for mailing documents while the primary address will continue to be used for pay and tax calculations.

Students

Students can view and update their addresses using Student Information Online (SIO). The Workday primary address will automatically populate using the permanent address from SIO. This address must be the student’s residence when not enrolled in class or the address listed on their legal identification cards, such as a driver’s license. Students may add a different mailing address in SIO, which will populate Workday. For assistance with SIO, contact the Hub, or for assistance with Workday, contact the HR Service Center.

If the employee hasn’t already done so, they should login to Workday and update their tax withholding elections by navigating to Pay > Manage My Tax Elections.  For more information and full instructions for viewing/changing tax withholding elections, view the Electronic Tax Forms Quick Guide [pdf].

Employees without a social security number (SSN) in Workday will be unable to complete their tax forms. To add a SSN to Workday, contact the HR Service Center.

The following states will have withholding and wage reporting if a primary residence or work address is reported: Arizona, California, Colorado, District of Columbia, Indiana, Maryland, Massachusetts, New Jersey, New York, Ohio, Pennsylvania, Virginia and West Virginia.

Graduate students who receive a stipend solely for the advancement of their education and follow the Personal Individual Tax Preparation Guide for Personal Income Tax Returns PA-40 (DF0-02) will not be taxed in Pennsylvania for state or local withholding. 

If the stipend does not meet the requirements set forth by the state of Pennsylvania, it will be fully taxable income. Each department is responsible to ensure stipends if considered exempt from Pennsylvania taxation. Any other income that is received from CMU will be taxed accordingly.

For more information, view the Tax Status of Graduate Student Awards policy.

Supplemental wages may be taxed at a rate that is different from the employee’s federal withholding based upon applicable tax law regulations.

Faculty and Staff

A:  Faculty and staff should update their addresses in Workday under Personal Information > Contact Information. Please contact the HR Service Center for further assistance on updating your address in Workday. Once the address is changed in Workday, refer to the Electronic Tax Forms Quick Guide [pdf] for instructions on how to update your tax elections in Workday.

Students

Students who are paid in Workday should update their addresses in Student Information Online (SIO). The address will automatically update in Workday. Once the address is changed in Workday, refer to the Electronic Tax Forms Quick Guide [pdf] for instructions on how to update your tax elections in Workday.

For more information, view the Electronic Tax Forms Quick Guide [pdf].

If the employee works in Pittsburgh and their primary address in Workday is correct, Pittsburgh local taxes will be withheld from their pay even if the employee lives outside of city limits. 

Employers in Pennsylvania are required to: 

  • Withhold the higher percentage of either the lived-in or worked-in local tax rates. (e.g., 1.5 percent will be deducted if your lived-in tax rate is 1.5 percent and your worked-in tax rate is 1.0 percent.) 
  • Report the Non-Resident amount to the work local tax authority (e.g., Pittsburgh at 1.0 percent).
  • Report any additional taxation for the lived-in local to the lived-in local tax authority (e.g., 0.5 percent difference between lived-in and worked-in local tax withholding for Pittsburgh). 
  • Report both your lived-in and worked-in codes to Jordan Tax Service, the agency where local tax withholdings are sent.

To make changes to tax elections or to view current elections, employees can navigate in Workday to Pay > Manage My Tax Elections. For full instructions for viewing/changing tax withholdings, view the Electronic Tax Forms Quick Guide [pdf]. For more information on properly filing local tax withholdings while working in Pittsburgh, employees should contact their personal tax advisor.

The determination of earned income tax (EIT) rate is based on work location and primary address in Workday. If the employee resides in Pennsylvania, whichever is highest between the resident rate or the non-resident rate will be withheld.

Tax deductions can be found under employee taxes on your payslip.

For more information, view the View Your Payslip Quick Guide [pdf].

Pennsylvania state law requires employers to withhold earned income tax (EIT) from all employees who work in Pennsylvania. Students who work in Pennsylvania will have local tax deducted from their paycheck. If they report an out-of-state residence or non-Pittsburgh residence, the withholding rate will most likely be 1 percent. If they report a Pittsburgh local residence, the withholding rate will be 3 percent.

If a student is not enrolled in full-time classes in Student Information Online (SIO), taxes will be withheld as per IRS requirements. If the department does not update the enrollment, please contact them to do so and Payroll can correct the pay periods that were processed incorrectly.

Non-resident aliens who are not subject to FICA taxes must updated their information in the Foreign National Information System (FNIS), the international tax allowance system, which ensures that taxes are withheld according to country of residence and visa documentation. Please contact the HR Service Center for FNIS login information. 

Pittsburgh specifically considers anyone who is on assignment from another country non-residents for tax purposes even if a Pittsburgh home address is used as your place of residence.

As long as you are not a U.S. citizen or permanent resident of the U.S., the city of Pittsburgh requires a 1 percent tax rate on your income.

If you have a Pittsburgh address in Workday and 3 percent is being deducted, contact the HR Service Center to get the rate corrected. If more than 1 percent was withheld in a prior year, those overpayments will be refunded from Jordan Tax Service who manages the city of Pittsburgh EIT filing and reporting requirements. You may contact them at 412-835-5243 or custsvc@jordantax.com

Please make sure you have also completed your Foreign National Information System (FNIS) application, so that CMU has correct information on file, which ensures your taxes are withheld accordingly.

CMU is required to withhold Social Security (OASDI) tax, even if an employee already maxed out for the year at a different employer. When filing tax returns, employees can claim a credit or refund from the IRS.  

View the Social Security Administration website for information regarding social security limits and employer requirements.

Please contact the IRS directly for any questions related to filing tax return or claimed refunds.