CONTROLLER'S OFFICE

Payroll Tax

Individuals receiving income in the U.S. are responsible for filing a federal tax return with the IRS each year if their income exceeds a certain threshold. In most cases, Nonresident Aliens must also file a tax return if they receive any U.S. income, with no minimum threshold. This obligation applies to various types of income, and taxpayers must report their earnings, claim deductions, and pay any taxes owed by the deadline, which is generally April 15 of the following tax year. Additionally, nonresident aliens living in the U.S. are required to file Form 8843, whether they receive income or not. Failure to file the required tax returns can result in IRS penalties.

Your federal income tax withholding is determined by the taxable amount of your paycheck, type of payment, and your Form W-4 details.
Your W-4 can be updated at any time from the Me section of your iO account. W-4 updates must be made through iO. The Payroll office cannot accept a paper W-4.
W-4 updates should be submitted through iO no fewer than five business days before a scheduled pay date to ensure that the updates are reflected on your next paycheck. Updates made any closer to the pay date might not be applied until the following pay period.
Supplemental one-time payments such as bonuses are subject to a flat 22% withholding tax rate.
Nonresident alien employees are required to have a higher federal income tax rate of at least 10% to comply with IRS regulations. Because nonresident aliens, with the exception of students and business apprentices from India, are generally not eligible to claim the standard deduction on their tax returns, a higher withholding rate is required. If you are a foreign national employee, your status as a nonresident alien or resident alien will be determined based on your individual visa/immigration history with the US, as submitted through the Sprintax Calculus System.
While Rice cannot advise you on how to complete your W-4, the IRS provides some helpful resources that you may find useful

NOTE FOR GRADUATE STUDENT FELLOWS – While certain fellowship payments are processed through the Payroll office, these are considered non-employment income and have different tax withholding and reporting rules, depending on your U.S. tax residency status. Please see the Guidance for Fellows section for more details.

Most employees in the U.S. are required to have social security and Medicare taxes withheld from their paycheck, with exceptions for certain students and nonresident employees.
Social Security tax rate = 6.2% on all wages, less non-retirement pretax deductions, up to the annual wage cap. The social security wage cap for 2024 is $168,600. The social security wage cap for 2025 will be $176,100.
Medicare tax rate = 1.45% on all wages, less non-retirement pretax deductions up to $200,000 in the calendar year. An additional Medicare deduction of 0.9% is withheld for all taxable wages above $200,000 in a calendar year.

Individuals exempt from FICA withholding

Student employees who are enrolled at least half-time in Rice University courses. Undergraduate students must be enrolled in at least 6 credit hours, and graduate students must be enrolled in at least 5 credit hours to qualify for FICA exemption.
Nonresident aliens on F-1, J-1, M-1, Q-1, and Q-2 visas

Texas has no state income tax withholding requirement, but employees working remotely from out of state may have additional state or local tax withholding requirements depending on their local tax laws.
State and local tax deductions are determined based on your designated address in your iO account. You can view and update your address from the Me > Personal Information > Contact Info section of iO.
If you do not have a designated “Resident Tax Address”, state and local taxes will be withheld based on your designated “Home Address”. If you have designated a separate “Resident Tax Address”, your withholding will instead be based on this address.
It is an employee’s responsibility to ensure that their iO address and tax withholding are correct.

Taxable income for employees includes employment compensation such as wages and bonuses. Fringe benefits such as employer-provided vehicles, and certain allowances (like housing or travel) can also be considered taxable income.
For a summary of the various types of taxable income, and the relevant tax withholding and reporting requirements, please refer to the Rice Payment Reference Guide.

W-2 forms for the 2024 tax year will be available in January 2025. Recipients who have requested to suppress their paper forms will be able to view the W-2 on their MyADP accounts. All others will have their forms mailed to them. For any questions about the MyADP system, or to request replacement copies of your W-2, please contact the Payroll office at payroll@rice.edu.
The W-2 form, also known as the Wage and Tax Statement, outlines the total amount of taxable wages paid and taxes withheld from your paycheck for the year. This form is essential for you to file your federal and state income tax returns accurately. It includes detailed information such as your taxable income, social security wages, Medicare wages, federal and state taxes withheld, and any contributions to retirement plans. Employers are required to make W-2 forms available to their employees by January 31st of the following year.
If you would prefer to receive an electronic copy of your W-2 instead of a mailed paper form, you can update your paperless form setting from your MyADP account. You can access MyADP by following the "ADP - W2 Form" link from the "Me" section of your iO account. Please note that if you have not previously received a W-2 from Rice, or if you did not have a valid U.S. address or SSN when you received a prior-year W-2, you may not have MyADP access yet. Instructions for accessing the system and updating the paperless form options will be sent to your Rice email address in December.

1042-S forms for the 2024 tax year will be available in 2025, no later than 3/15/2025. Recipients who have consented to receive their 1042-S electronically through Sprintax Calculus will be able to view the 1042-S on their Calculus accounts. All others will have their forms mailed to them. 1042-S forms will not be available in the Foreign National Information System (FNIS), which was retired in November 2024. For any questions about the Sprintax Calculus system, or to request replacement copies of your 1042-S, please contact ForeignNationalTax@rice.edu.
The 1042-S form is used to report taxable non-employee payments to Foreign Nationals, such as fellowships, royalties, or awards, as well as any pay that is received tax-free under a tax treaty.
It's possible that you might receive more than one 1042-S form if you received multiple types of non-employee taxable pay, or had different tax rates applied at different points throughout the year. If you aren't sure which forms you should receive, please contact ForeignNationalTax@rice.edu.
If you would prefer to receive an electronic copy of your 1042-S instead of a paper form, you can submit your electronic form consent from your Sprintax Calculus account.

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