Impact to Your Pay and Payroll Tax, Effective July 1, 2019

News from August 5, 2019

You may access a summary of payroll and payroll tax changes in this document, Workday Payroll and Payroll Tax Fact Sheet, and detailed below, prepared by the Division of Finance. In addition, you may use Workday tip sheets on related topics to help you navigate your personal information. Note that you need your PennKey to access tip sheets.  

FACT SHEET PREPARED BY THE DIVISION OF FINANCE

Direct Deposit (Pay Elections)

  • You can now direct your pay to up to three (3) different bank accounts.
  • Pay Election (Direct Deposit) account information is no longer validated by the bank prior to payment, eliminating delays in availability of direct deposit.
    • IMPORTANT!! You should review your banking information carefully before submitting. An error in banking information could result in a delay in receiving your pay.

Credit Union Account

  • Credit Union accounts will show as a Pay Election (Direct Deposit) account to which payments are directed.
    • Credit Union accounts will count as one (1) of the three (3) bank accounts allowed for direct deposit.

Pay Advices (Pay Slips)

  • Pay Slips (Pay Advices) will no longer be printed, but will be available to view and print in Workday.

W-4 and Other Tax Forms

  • Federal and State W-4 forms as well as Local Residency Forms can be completed securely on-line at any time day or night.

W-2 Forms

  • W-2 Forms beginning with the 2019 Tax Year will be available in Workday.
    • Tax Years 2018 and 2017 will be available via the “My Tax Info” link on the U@Penn Portal.
    • W-2 Forms for years prior to 2017 can be obtained by contacting the Payroll Office.
  • You are encouraged to select electronic delivery of your W-2.

State Tax Withholding

  • Individuals who are subject to state withholding in both their states of work and of residence will have tax withheld for both states.
    • This does not apply to states with reciprocal agreements with Pennsylvania (e.g., New Jersey).

Federal Tax Withholding – Supplemental Wages

  • Supplemental wages such as bonuses, allowances, or vacation pay-outs at separation will be subject to federal tax withholding using the appropriate federal tax table based on your W-4 tax elections.

Address Changes

  • You are responsible for promptly updating any changes to your home address to ensure proper taxation. You should also verify that your supervisor has made any necessary changes to your work address.