6.51 Deductions from Pay and Pay Advices

Effective Date: April 1, 2010 (revised)


The College makes deductions from pay as required by law and as determined by an employee’s participation in benefit plans and other programs. The pay advice indicates such deductions and other pay and benefits information. This policy provides details on mandatory and elective pay deductions.


Employees are required to complete federal and applicable state withholding forms in order to comply with applicable laws.

Mandatory Deductions:

Federal and State Income Tax — The deduction for federal withholding is computed from Internal Revenue Service tax tables based on the number of exemptions claimed on an IRS Form W-4. The same basic principles apply to Connecticut state withholding forms. To periodically change tax withholding, an employee completes a new Form W-4 form and/or Connecticut State Income Tax withholding form and returns it/them to the Payroll Office.

Each employee is responsible for determining her or her own tax obligation and ensuring that the proper forms are submitted. The College will not assume responsibility for under- or over-withholding of mandatory income taxes.

Social Security Tax (FICA) — The deduction for this tax is separated into two categories on the pay advice: “OASDI” (old-age, survivors and disability insurance) is the Social Security part of the tax; “MED” is the allocation for Medicare. While the Social Security part of the FICA tax has an annual limit, the Medicare portion does not.

The current employee contribution rates are 6.2% for Social Security and 1.45% for Medicare. The College matches the amounts paid by each employee. For further information, see the Social Security website at http://www.ssa.gov.

Elective Deductions:

The following payroll deductions (after-tax) and salary reductions (pre-tax) are based on the plans an employee elects to participate in:

Insurance deductions for non-exempt employees are made in two equal installments each month. When there is a third paycheck in a month, no insurance plan deductions are made; however, the Retirement Plan contribution is deducted from the third check. Insurance deductions for exempt employees are made once a month.

Leave Balances:

Balances for vacation, sick, personal and floating holiday leave time, as applicable, are shown on the pay advice. They can also be viewed on the Employee Self Service area of PeopleSoft.

The College reserves the right to administer payroll and benefits in accordance with official plan documents which are located in Human Resources. The College specifically reserves the right to recover overpayments in compensation or underpayments of employee share of premiums.

See the policies in the following sections for additional relevant information:

Section 7 — Leave Benefits

Section 8 — Insured Benefits