C Payment upon Death Upon the death of an employee, payment in the name of the deceased is issued promptly for all hours worked and not yet compensated, plus an additional week's salary, and all accumulated vacation. The Payroll Administrator determines whether or not the employee's designated bank is a member. These deductions are treated as a tax-deferred salary reduction, subject to IRS limitations. B Federal Income Tax Federal income tax is deducted from each paycheck in amounts prescribed by the Internal Revenue Service. All employees who claim exemption from tax are required to submit a new W-4 by 15 February of each calendar year.
FICA tax is deducted from each paycheck at the rate specified by law.
UCAR contributes an amount equal to the employee contribution, as required by law. In certain cases, a nonresident alien employee may be exempt from FICA tax. All nonresident aliens need to notify the Payroll Office if they have any change in their visa status. In states having state income tax, this tax is withheld from paychecks in the amount prescribed by law. Calculation of state income tax is based on the laws of the state in which the employee's office is located.