Filling Out The Form W-4
PSU uses the federal Form W-4 and State of Oregon Form W-4 to record employees' choices for federal and Oregon state income tax withholdings. A completed Form W-4 is required for each employee who receives pay from the University according to the Internal Revenue Service laws of the United States. The information requested under "Employee's Withholding Allowance Certificate" must be provided to the University.
Different Requirements Depending on Employee Status
US Citizens and employees with Resident Alien or Substantial Presence Status will find detailed guidance on Form W-4 on the factors to consider when completing the Employee's Withholding Allowance Certificate, including when and if individuals may claim exemption from withholding.
The Substantial Presence status is based upon a test as outlined below that reflects each person's individual situation rather than in accordance with Non-Resident Alien restrictions outlined below. If an employee meets the test for Substantial Presence, they will need to review procedures for filing a tax return as well—Refer to IRS Publication 17—Your Federal Income Tax. Additional information regarding the test to determine Substantial Presence is located in the IRS Publication 519—US Tax Guide for Aliens.
Non-Resident Alien (NRA) employees at the University must adhere to the following restrictions when filling out the Form W-4. Failure to comply with these restrictions can result in Internal Revenue Service penalties and fines. Detailed instructions are found under the IRS Publication 519—US Tax Guide for Aliens.
Non-Resident Alien Restrictions for completing the Form W-4:
- Check "Single" regardless of marital status.
- Claim "1" allowance on line 5 (Oregon State form only).
- Non-Resident Alien employees NOT claim "Exempt".
- Non-Resident Alien employees must write "Non-Resident Alien" or "NRA" on the form.
Employees who are a residents of Canada, Mexico, or South Korea may claim more than one allowance. Students from India may claim an allowance for an accompanying spouse and dependent children who are US citizens or residents. US Nationals of American Samoa and the Northern Mariana Islands may also claim allowances for dependents.
Oregon Form W-4
Additionally, Oregon has its own withholding form: Oregon Withholding Statement and Exemption Certificate OR-W-4. Employees can find the Oregon department of revenue tax calculator here. Employees need to complete both forms. Employees who miss completing the Oregon withholding form will be taxed at the highest rate of 8%.
Changing Withholdings*
The Form W-4 may be updated by completing a new form whenever there is a change in individual tax situation and the employee would like withholdings to reflect this. Changes may include events such as marriage, divorce, adding a new dependent, increase or decrease in FTE, and so on. If an employee submits a Form W-4 reflecting an exemption from withholding, they must complete a new request for this exemption by February 10th of each year, as the exemption expires each year in February.
If an employee wishes to withhold additional amounts for Federal and/or State, they may do so by entering the additional dollar amount in the appropriate field for each form; Federal and/or State.
Employees may also refer to the IRS Federal Tax Calculator and the Oregon Department of Revenue Tax Calculator for more guidance on tax withholding.
*Legal and/or tax documents cannot be backdated or processed retroactively