Tax withholdings vary according to an individual's specific situation. Employees are subject to the following tax withholdings.

Federal Tax (pdf)

• W-4 (must be submitted via Oracle Administrative System)
• 673 Statement for Claiming Exemption from Withholding on Foreign Earned Income State Tax (Alabama) (pdf)

State Tax (Alabama)

• A-4 (must be submitted via Oracle Administrative System)

Out-of-State

Payroll Services Direct Deposit: Payroll direct deposit is required for all UAB employees including those working outside the state of Alabama. Employees may create and/or edit direct deposit accounts using Oracle Self Service Applications. If direct deposit information is not received prior to the first payment, a check will be mailed to the employee's address of record. Subsequent checks will be held in the Payroll Services office until direct deposit information is entered into the Oracle system.

Employee's Withholding Exemption Certificate: UAB employees with an assignment work location outside the state of Alabama are required to complete a state tax withholding form applicable to the state in which the work is performed as well as a federal W-4 form. Select the appropriate state withholding form and federal form W-4. Once completed, you may fax (205) 975-4739 the forms to Payroll Services. If no tax form is received before the payroll deadline, the maximum withholding, single with -0- allowances, will be withheld for both federal and state.

Employees with multiple work locations should complete a state employee withholding certificate for each state. The United States Department of Labor lists all U.S. state tax forms on its site.

Federal Insurance Contributions Act (FICA)

• Social Security: 6.20% (the Social Security rate was dropped by 2% in 2012 to 4.20%)
• Medicare: 1.45% (additional Medicare 0.9% for individuals with income above $200,000 ($250,000 for married couples filing jointly)
• Student FICA

City Tax

• Birmingham - 1.00%
• Bessemer - 1.00%
• Leeds -1.00%

City tax withholding is dependent on the employee's work location. Days worked outside the city may qualify for a refund of taxes withheld. Request a refund of city taxes.

Social Security

Social Security taxes are subject to a taxable wage cap:

• 2023: $160,200
• 2022: $147,000
• 2021: $142,800
• 2020: $137,700
• 2019: $132,900
• 2018: $128,400
• 2017: $127,200

When an employee meets the social security taxable wage cap within the tax year, social security taxes are no longer withheld. The social security tax withholding is reset each January and subject to the tax year's wage cap.

Scholarships/Fellowships

Scholarship and fellowship payments are subject to different taxation rules than compensation. Learn more about the taxability of scholarship and fellowship payments.

Non-U.S. Citizens

Non-U.S. citizens are subject to specific taxation withholding rules.