Pay Deductions and Setoffs

The law requires Agnes Scott College retain employment eligibility forms (I-9) and make certain deductions from every employee's compensation. Among these are applicable federal, state and local income taxes. The College also must deduct Social Security taxes on each employee's earnings up to a specified limit called the Social Security "wage base." The College also must deduct Medicare tax, for which there currently is no wage base. Agnes Scott matches the amount of Social Security taxes paid by each employee.

Upon initial employment, each employee is required to provide proof of employment eligibility and fill out the I-9 form, as well as federal and state tax forms (W-4, G-4 forms). These forms are maintained by the Office of Human Resources. Employees who wish to change information on federal or state tax form (W-4, G-4) should contact the Office of Human Resources.

Agnes Scott offers programs and benefits beyond those required by law. Eligible employees may voluntarily authorize deductions from their paychecks to cover the costs of participation in these programs.

Pay setoffs are pay deductions taken by Agnes Scott, usually to help pay off a debt or obligation to the College or others. The College is authorized to hold paychecks and/or deduct from regular paychecks or vacation pay amounts owed by its employees for any fine, fee, penalty or other financial obligation to the institution. Generally, arrangements for deductions of this type are made between the College and the employee in advance. Upon termination of employment, if the employee fails to make arrangements with the College for amounts owed to the College, these deductions will automatically be made. This withholding is subject to all applicable federal and state regulations.

Questions concerning deductions or calculations for deductions should be addressed to the payroll manager.


Policy No.  410  Issued  1/1/2004